13.4k views
3 votes
At May 1, 2018, Kibbee Company had beginning inventory consisting of 200 units with a unit cost of $7.00. 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

User Uhu
by
8.0k points

1 Answer

4 votes

Answer:

See below

Step-by-step explanation:

First, we will compute the total cost

Total cost = Beginning inventory + Purchases in May

Total cost = 200 × $7 + (800 × $7) + $600 × $8

Total cost = $1,400 + $5,600 + $4,800

Total cost = $11,800

Then,

Total number of units = Beginning Inventory + Purchases in May

Total number of units = 200 units + (800 units + 600 units)

Total number of units = 200 units + 1,400 units

Total number of units = 1,600 units

User Erikreed
by
9.5k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories