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

question 94

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 periodic inventory weighted-average inventory method?

• A)$14,703
• B)$16,945
• C)$17,713
• D)$21,508

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Definitions:

OASDI

Stands for Old-Age, Survivors, and Disability Insurance, a program that provides monthly benefits to retired individuals, survivors of deceased workers, and disabled workers funded through payroll taxes.

Federal Income Tax

The tax levied by the national government on individual or corporate income.

Allowances

Amounts deducted from an employee's gross pay for specific purposes such as taxes, health insurance, and retirement funds.

Overtime Rate

The rate of pay that is higher than the regular hourly rate, paid to employees for hours worked beyond the standard workweek.