At May 1, 2014, Deitrich Company Had Beginning Inventory Consisting

question 214

Multiple Choice

At May 1, 2014, Deitrich Company had beginning inventory consisting of 200 units with a unit cost of €3.50. During May, the company purchased inventory as follows: 400 units at €3.50
600 units at €4.00
The company sold 1,000 units during the month for €6 per unit. Deitrich uses the average-cost method. The average cost per unit for May is

• A) €3.50.
• B) €3.75.
• C) €3.80.
• D) €4.00.

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Definitions:

Retaining

The process of keeping something in possession or continuing to have something, such as employees or information.

Motivating

The process of encouraging or stimulating individuals or groups to achieve specific goals or perform at a higher level through various means, such as incentives, support, or recognition.

Lump Sum

A single payment made at a particular time, as opposed to smaller installments made over a period.

Impact

The effect or influence of one thing on another, particularly in the context of changes or interventions.