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

question 61

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 for the month closest to:

• A)$12,100
• B)$16,200
• C)$16,300
• D)$17.100

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Definitions:

Manager's Authority

The rights and powers entrusted to a manager to make decisions and direct resources and personnel towards the accomplishment of organizational objectives.

Manager's Power

The authority and influence held by managers to make decisions and direct the actions of employees.

Conglomerate

A coarse-grained sedimentary rock composed of rounded fragments or clasts of pre-existing rocks.

Basalt

A dark, fine-grained volcanic rock that is formed from the rapid cooling of basaltic lava at the Earth's surface.