At May 1, 2015, Kibbee Company Had Beginning Inventory Consisting

question 30

Multiple Choice

At May 1, 2015, Kibbee Company had beginning inventory consisting of 200 units with a unit cost of $7. During May, the company purchased inventory as follows: The company sold 1,000 units during the month for $12 per unit. Kibbee uses the average cost method. Kibbee's gross profit for the month of May is

• A)$4,625.
• B)$4,571.
• C)$4,000.
• D)$4,500.

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Definitions:

Cash Account

A financial account that tracks the amount of cash inflows and outflows, representing the company's liquid assets.

Increases

The act or process of becoming larger or greater in size, amount, number, or degree.

Posting

The process of transferring the debits and credits from the journal entries to the accounts.

Journal Entries

An accounting action recorded through the logging of debits and credits across accounts, forming the basis for building financial statements and tracking financial transactions.