On May 1, 2022, Heineken Company had beginning inventory consisting of 300 units with a unit cost of $7.During May, the company purchased inventory as follows: 600 units at $7
900 units at $8
The company sold 1,500 units during the month for $12 per unit.Heineken uses the average-cost method.Heineken's gross profit for the month of May is
A)$6,750
B)$11,250
C)$13,500
D)$18,000

Question

Quizplus · Accepted Answer

The average cost per unit is $7.50 (($7 x 300) + ($7 x 600) + ($8 x 900)) / (300 + 600 + 900) = $22,500 / 1,800 = $7.50). The cost of goods sold is $11,250 (1,500 units x $7.50). The gross profit is $6,750 ($18,000 - $11,250).

On May 1, 2022, Heineken Company Had Beginning Inventory Consisting