[The following information applies to the questions displayed below.] The inventory records for Radford Co. reflected the following:

Beginning inventory @ May 1	100 units @ $4.00
First purchase @ May 7	300 units @ $4.40
Second purchase @ May 17	500 units @ $4.60
Third purchase @ May 23	100 units @ $4.80
Sales @ May 31	900 units @ $7.80

What is the amount of gross margin assuming the weighted-average inventory cost flow method?

Multiple Choice

1.$3,015

2.$2,412

3.$1,314

4.$2,970