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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?

  • A : $5,810

  • B : $5,400

  • C : $5,363

  • D : $5,893

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