At May 1, 2010, Deitrich Company Had Beginning Inventory Consisting

Multiple Choice

At May 1, 2010, Deitrich Company had beginning inventory consisting of 100 units with a unit cost of $7. During May, the company purchased inventory as follows:
200 units at $7
300 units at $8
The company sold 500 units during the month for $12 per unit. Deitrich 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.