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.The value of Heineken's inventory at May 31, 2022 is
A)$2,100
B)$2,250
C)$2,400
D)$13,500

Question

Quizplus · Accepted Answer

The average cost per unit is calculated as [(300 units * $7) + (600 units * $7) + (900 units * $8)] / (300 + 600 + 900) = $7.50. The ending inventory is 300 units (1800 total units - 1500 units sold) at $7.50 per unit, totaling $2,250.

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