Stubbs Company Uses the Perpetual Inventory Method

question 68

Multiple Choice

Stubbs Company uses the perpetual inventory method.On January 1,2016,Stubbs purchased 400 units of inventory that cost $8.00 each.On January 10,2016,the company purchased an additional 600 units of inventory that cost $9.00 each.If Stubbs uses a weighted average cost flow method and sells 700 units of inventory for $16.00 each,the amount of gross margin reported on the income statement will be:

• A)$5,180.
• B)$5,250.
• C)$5,000.
• D)$6,020.

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Definitions:

Arbitrarily Formed Groups

Groups formed without any specific rationale or logical reasoning, often for experimental purposes.

Presumed Membership

The assumption or belief that an individual belongs to a certain group or category based on perceived characteristics or stereotypes.

Asian

Pertaining to or originating from Asia, including its peoples, cultures, languages, and societies.

Scapegoating

A psychological or social process where individuals or groups assign blame to others for problems or negative outcomes.