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KC Band Supply began August with 400 units of reeds having a unit cost of $2 in inventory. Relevant information is listed as follows: Purchase
KC Band Supply began August with 400 units of reeds having a unit cost of $2 in inventory. Relevant information is listed as follows:
Purchase | August 6 | 300 units at $3 per unit |
Sale | August 11 | 475 units at $10 per unit |
Purchase | August 13 | 300 units at $4 per unit |
Sale | August 29 | 355 units at $10 per unit |
If KC Band Supply uses the average cost method inventory cost flow assumption, what amount will it report as gross profit for August?
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A : $5,810
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B : $5,400
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C : $5,363
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D : $5,893
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