Grays Company Has Inventory of 10 Units at a Cost

question 47

Multiple Choice

Grays Company has inventory of 10 units at a cost of $10 each on August 1.On August 3,it purchased 20 units at $12 each.12 units are sold on August 6.Using the perpetual FIFO inventory method,what amount will be reported as cost of goods sold for the 12 units that were sold?

• A)$120.
• B)$124.
• C)$128.
• D)$130.
• E)$140.

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Definitions:

Multiplier

In economics and finance, a factor that quantifies the impact of an increase in spending or investment on the overall income or output of an economy, often used to measure the effects of fiscal policy.

Dollars

The official currency of the United States, used as a standard monetary unit.

Annual Risk-free Rate

The theoretical rate of return of an investment with zero risk over a one-year period, often represented by government bonds.

Futures Price

The price at which a futures trader commits to make or take delivery of the underlying asset.