At the beginning of the year, Elwood Company had 100 units in its inventory at $50 each. On January 17, the company purchased 100 units for $60 each and at the end of the month sold 150 units for $95 each. During March, the company made two purchases of 200 units and 300 units for $70 and $80 each respectively. In the month of April, the company sold 450 units for $105 each. If the company is applying averaging, what would be the amount of gross profit?

a. $20,500
b. $18,500
c. $17,500
d. $19,000
e. $19,500

Ans: e. $19,500

Business

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