At May 1, 2022, Mark Company Had Beginning Inventory Consisting

question 168

Multiple Choice

At May 1, 2022, Mark Company had beginning inventory consisting of 200 units with a unit cost of $7. During May, the company purchased inventory as follows: 800 units at $7
500 units at $9
The company sold 500 units during the month for $12 per unit. Mark uses the average cost method. Mark's gross profit, to the nearest dollar, for the month of May is

• A) $2,167.
• B) $2,000.
• C) $1,500.
• D) $4,333.

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Definitions:

Principal

The primary party involved in a transaction or agreement, especially in finance, law, or education, or the amount of money on which interest is paid or received.

All Business

The term "all business" generally implies a focus on practical and effective actions, often with a serious or determined approach to work or tasks.

Conduct

Refers to the manner in which a person behaves, especially in a particular place or situation, or the execution of an action.

Principal/Employer

The party in an agency relationship who authorizes another (the agent) to act on their behalf, or the entity that hires employees to perform work.