At May 1, 2013, Kibbee Company had beginning inventory consisting of 100 units with a unit cost of $7. During May, the company purchased inventory as follows:

400 units at $7

300 units at $8

The company sold 500 units during the month for $12 per unit. Kibbee uses the average cost method. The average cost per unit for May is

A)

$7.000.

B)

$7.375.

C)

$7.500.

D)

$8.000.

27.

The Modified Accelerated Cost Recovery System (MACRS) is a depreciation method which

A)

is used for tax purposes.

B)

must be used for financial statement purposes.

C)

is required by the SEC.

D)

expenses an asset over a single year because capital acquisitions must be expensed in the year purchased.