At May 1, 2013, Kibbee Company had beginning inventory consisting of 100 units w

Question

At May 1, 2013, Kibbee Company had beginning inventory consisting of 100 units with a unit cost of $7. During May, the company purchased inventory as follows: 400 units at $7 300 units at $8 The company sold 500 units during the month for $12 per unit. Kibbee uses the average cost method. The average cost per unit for May is A) $7.000. B) $7.375. C) $7.500. D) $8.000. 27. The Modified Accelerated Cost Recovery System (MACRS) is a depreciation method which A) is used for tax purposes. B) must be used for financial statement purposes. C) is required by the SEC. D) expenses an asset over a single year because capital acquisitions must be expensed in the year purchased.
At May 1, 2013, Kibbee Company had beginning inventory consisting of 100 units with a unit cost of $7. During May, the company purchased inventory as follows: 400 units at $7 300 units at $8 The company sold 500 units during the month for $12 per unit. Kibbee uses the average cost method. The average cost per unit for May is A) $7.000. B) $7.375. C) $7.500. D) $8.000. 27. The Modified Accelerated Cost Recovery System (MACRS) is a depreciation method which A) is used for tax purposes. B) must be used for financial statement purposes. C) is required by the SEC. D) expenses an asset over a single year because capital acquisitions must be expensed in the year purchased.
At May 1, 2013, Kibbee Company had beginning inventory consisting of 100 units with a unit cost of $7. During May, the company purchased inventory as follows: 400 units at $7 300 units at $8 The company sold 500 units during the month for $12 per unit. Kibbee uses the average cost method. The average cost per unit for May is A) $7.000. B) $7.375. C) $7.500. D) $8.000. 27. The Modified Accelerated Cost Recovery System (MACRS) is a depreciation method which A) is used for tax purposes. B) must be used for financial statement purposes. C) is required by the SEC. D) expenses an asset over a single year because capital acquisitions must be expensed in the year purchased.

Explanation / Answer

The Modified Accelerated Cost Recovery System (MACRS) is a depreciation method which is used for tax purposes

beginning inventory 100 7 700 400 7 2800 300 8 2400 Total 800 Cost of goods available for sale 5900 Average Cost of goods sold 5900/800 7.375

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