Question
Choose the correct answer and explain why. At May 1, 2016, Bibby Company had beginning inventory consisting of 200 units with a unit cost of
Choose the correct answer and explain why.
At May 1, 2016, Bibby Company had beginning inventory consisting of 200 units with a unit cost of $7. During May, the company purchased inventory as follows:
800 units at $7
600 units at $8
The company sold 1,000 units during the month for $12 per unit. Bibby uses the average cost method. The average cost per unit for May is
a. $7.000.
b. $7.375.
c. $8.000.
d. $9.000.
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Quantitative Analysis For Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna
11th Edition
162
