Final answer:
The average cost per unit of inventory for ABC Company using the average cost method is b. $13.60, which is calculated by dividing the total cost of $68 by the 5 units purchased.
Step-by-step explanation:
The question is about determining the unit cost of inventory using the average cost method. To calculate this, you add up the total cost of all items and then divide by the number of items. With an ABC Company purchasing five products at different costs, the unit costs are $10, $12, $15, $18, and $13. Adding these together gives a total cost of $68 for five units. Dividing $68 by 5 results in an average cost of $13.60 per unit. Therefore, answer 'b' $13.60 is the correct unit cost to use for determining the amount in ending inventory or cost of goods sold using the average cost method.
The unit cost used to determine the amount in ending inventory or cost of goods sold using the average cost method is calculated by finding the average of the unit costs of the products purchased. In this case, the unit costs are $10, $12, $15, $18, and $13. To find the average, add up all the unit costs and divide by the number of products. ($10 + $12 + $15 + $18 + $13) / 5 = $13.60. Therefore, the unit cost used will be $13.60. Hence, option b. $13.60 is the correct answer.