Genius Co, which uses a weighted average perpetual inventory system, had the following inventory on hand as at Jan 4^th, year 1:

Purchase Date Units Cost Total

Jan 1, Year 1 10 $40 $400
Jan 3, Year 1 15 $50 $750
If Genius Co. sold 12 units on Jan 4th, year 1 for $80 per unit, what is the gross profit they would report?

Select one:

a.

$500

b.

$960

c.

$408

d.

$460