The inventory records for radford co. reflected the following:
beginning inventory @ may 1 700 units @ $3.00
first purchase @ may 7 800 units @ $3.20
second purchase @ may 17 1000 units @ $3.30
third purchase @ may 23 600 units @ $3.40
sales @ may 31 2400 units @ $4.90
1. what is the amount of gross margin assuming the weighted-average inventory cost flow method? (round your intermediate calculations to two decimal places.)
a. $3600
b. $4320
c. $4008
d. $8160

The correct answer is option C. $4.008.

Explanation:

The amount of gross margin is calculated by the formula Gross Margin = Quantity sold * (sale price per unit - weight-average cost per unit). In order to get the weight-average cost per unit, you need to create a table where the weight-average cost is calculated after each purchase operation as follows: (Quantity purchased / total inventory)*purchased price+[1-(Quantity purchased / total inventory)]*inventory cost per unit. Bear in mind that the cost will change with every purchase. In this exercise you have 3 purchase operations, so you will have to calculate 3 different weight-average costs. The relevant average cost is the last one because it is the value to be used in the first formula stated.

(75years ,i believe is the correct answer.good luck