Use the following information for questions 1-3. At May 1, 2008, Treeline Company had beginning inventory consisting of 100 units with a unit cost of $7. During May, the company purchased inventory as follows: 200 units at $7 300 units at $8 The company sold 500 units during the month for $12 per unit. Treeline uses the average cost method. 1. The average cost per unit for May is a. $7.00. b. $7.50. c. $7.60. d. $8.00. 2. The value of Treeline's inventory at May 31,2008 is a. $700. b. $750. c. $800 d. $4,500. 3. Treeline's gross profit for the month of May is a. $2,250. b. $3,750. c. $4,500 d. $6,000. 4. Pembrook Company had beginning inventory on May 1 of $12,000. During the month, the company made purchases of $30,000 but retuned $2,000 of goods because they were defective. At the end of the month, the inventory on hand was valued at $9,500. Calculate cost of goods available for sale and cost of goods sold for the month. 5. Principles of an efficient and effective accounting information system include all of the following except a. cost effectiveness. b. flexibility. c. useful output. d. All of these options are principles. 6. Which of the following statements is incorrect? a. A major consideration in developing an accounting system is cost effectiveness. b. When an accounting system is designed, no consideration needs to be given to the needs and knowledge of the various users. c. The accounting system should be able to accommodate a variety of users and changing information needs d. To be useful, information must be understandable, relevant, reliable, timely, and accurate