Use the Following Information for Questions:
a Company Had the Following

question 5

Multiple Choice

Use the following information for questions:
A company had the following inventory activity during May: $\begin{array}{lrrrr}&\text { Units}&\text { Unit Cost }&\text {Total Cost }&\text { Unit Price }\\\hline\text { Beginning inventory } & 100 & \$ 20.00 & \$ 2,000 & \\\text { Purchase: May 3 } & 900 & \$ 21.00 & 18,900 & \\\text { Sale: May 5 } & (900) & & & \$ 30.00 \\\text { Purchase: May 15 } & 1,000 & \$ 21.00 & 21,000 & \\\text { Sale: } & (900) & & & \$ 30.00\end{array}$
-If the company uses a perpetual system and the FIFO cost flow assumption, what is the gross margin on the May 5 sale closest to?

• A)$6,100
• B)$8,100
• C)$8,200
• D)$8,550

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Definitions:

Excess Solvency

refers to the situation where a company holds significantly more assets or financial reserves than the minimum required by regulators to cover its liabilities and potential claims.

Proxy

A form of authorization given by a shareholder or other party allowing another person to vote or act on their behalf, often used in corporate settings.

Corporate Matters

Issues or affairs related to the governance, management, and regulatory compliance of corporations.

Model Business Corporation Act (MBCA)

A set of laws proposed by legal experts to guide states in the establishment of their corporate statutes.