At May 1, 2016, Bibby Company had beginning inventory consisting of 200 units with a unit cost

Question:

At May 1, 2016, Bibby Company had beginning inventory consisting of 200 units with a unit cost of $7. During May, the company purchased inventory as follows:
800 units at $7
500 units at $9
The company sold 500 units during the month for $12 per unit. Bibby uses the average cost method. Bibby's gross profit for the month of May is
$ 2,000
$ 1,500
$ 4,333
$ 2,167