At May 1, 2017, Heineken Company Had Beginning Inventory Consisting

question 17

Multiple Choice

At May 1, 2017, 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 average cost per unit for May is

• A)$7.00.
• B)$7.50.
• C)$7.60.
• D)$8.00.

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Definitions:

Production Possibilities

A curve representing all possible combinations of two goods that can be produced within a given economy when resources are fully and efficiently utilized.

Specializes

Specialization involves focusing on a narrow area of knowledge or skill, often to improve efficiency or performance.

Terms Of Trade

The ratio at which a country can trade its exports for imports from other countries; reflects the relative prices of a country's export and import products.

Production Possibilities

The different combinations of goods and services that an economy can produce efficiently with given resources and technology.