At May 1, 2018, Kibbee Company had beginning inventory consisting of 200 units with a unit cost of $7.00. During May, the company purchased inventory as follows: 800 units at $7
600 units at $8
The company sold 1,000 units during the month for $12 per unit. Kibbee uses the average cost method. The value of Kibbee

See below

Explanation:

First, we will compute the total cost

Total cost = Beginning inventory + Purchases in May

Total cost = 200 × $7 + (800 × $7) + $600 × $8

Total cost = $1,400 + $5,600 + $4,800

Total cost = $11,800

Then,

Total number of units = Beginning Inventory + Purchases in May

Total number of units = 200 units + (800 units + 600 units)

Total number of units = 200 units + 1,400 units

Total number of units = 1,600 units

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