A Company Has Inventory of 10 Units at a Cost

question 56

Multiple Choice

A company has inventory of 10 units at a cost of $10 each on June 1. On June 3, they purchased 20 units at $12 each. 12 units are sold on June 5. Using the FIFO periodic inventory method, what is the cost of the 12 units that were sold?

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

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Definitions:

Clarification Studies

Research designed to increase understanding or provide explanations for specific phenomena, often by removing ambiguities.

Duplication Studies

Research conducted to repeat the methodology and experiment of a previous study to verify its findings and conclusions.

Statistically Significant

A mathematicallly determined indicator that the results of a study or experiment are unlikely to have occurred by chance.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.