At May 1, 2018, Kibbee Company had beginning inventory consisting of 200 units with a unit cost of $7. During May, the company purchased inventory as follows: 800 units at $7
600 units at $8
The company sold 1,000 units during the month for $12 per unit. Kibbee uses the average cost method. The value of Kibbee's inventory at May 31, 2018 is

Question

Quizplus · Accepted Answer

The average cost per unit is $7.50 ($2,800 ÷ 375 units). The ending inventory is 300 units (200 beginning + 800 purchased + 600 purchased - 1,000 sold). The value of the ending inventory is $2,250 (300 units × $7.50).

At May 1, 2018, Kibbee Company Had Beginning Inventory Consisting