At May 1, 2011, Deitrich Company Had Beginning Inventory Consisting $€ 3.50$

question 94

Multiple Choice

At May 1, 2011, Deitrich Company had beginning inventory consisting of 100 units with a unit cost of $€ 3.50$ . During May, the company purchased inventory as follows:.

200 units at $€ 3.50$
300 units at $€ 4.00$

The company sold 500 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:

Bankruptcy Law

The body of laws that govern the legal process for the resolution of financial distress of individuals and businesses under various chapters of the Bankruptcy Code.

Creditors

Individuals or institutions that lend money or extend credit, and are owed repayment by debtors.

Debtors

Persons or entities that owe money to another individual or entity, typically as a result of borrowing funds.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts.