Grays Company Has Inventory of 10 Units at a Cost

question 42

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 FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 12 units that were sold?

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

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Definitions:

Retarded Growth

Delayed or slowed physical development, often due to nutritional, genetic, or hormonal factors.

Water Intake

The process of consuming water to maintain the body's fluid balance essential for health and survival.

Uncontrolled Appetite

A condition characterized by an excessive or insatiable desire to eat, often leading to overeating.

Thalamic Nuclei

Collections of neurons in the thalamus involved in relaying sensory and motor signals to the cerebral cortex.