Table 6-6 Sam's Wholesale Bikes -Refer to Table 6-6

question 103

Multiple Choice

Table 6-6 Sam's Wholesale Bikes $$\begin{array} { | l | l | } \hline \text { January } 1 \text { inventory balance } & 15 \text { units at } \$ 350 \text { per unit } \\\hline \text { January } 4 \text { purchase } & 50 \text { units at } \$ 375 \text { per unit } \\\hline \text { January } 15 \text { sale } & 40 \text { units at } \$ 550 \text { per unit } \\\hline \text { February } 8 \text { purchase } & 80 \text { units at } \$ 405 \text { per unit } \\\hline \text { February } 15 \text { sale } & 70 \text { units at } \$ 550 \text { per unit } \\\hline\end{array}$$
-Refer to Table 6-6. What is the gross margin for the two months assuming that Sam's uses the perpetual inventory weighted-average-cost method?

• A)$13,504
• B)$21,728
• C)$10,800
• D)$17,977

---

Definitions:

Molten Rock

Rock that has been heated to a liquid form by extreme temperatures within the Earth's mantle or crust.

Lava

Magma that is erupted onto the surface, or the rock mass into which it solidifies.

Uplift

The vertical elevation of the Earth's surface due to natural causes like tectonic movements.

Metamorphism

The mineralogical and structural changes of solid rock in response to changes in environmental conditions, especially at depth.