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

Question 69

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. Deitrich's gross profit for the month of May is


A) $2,250.
B) $3,750.
C) $4,500.
D) $6,000.

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