A Company Has Beginning Inventory of 10 Units at a Cost

question 138

Multiple Choice

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

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

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Definitions:

Statistical Discrimination

Statistical Discrimination is the practice of making judgments about the likely behaviors of individuals based on statistical averages of the group they belong to, rather than on their own personal characteristics.

Ivy League

A group of eight prestigious private universities in the Northeastern United States known for their high academic standards and significant history.

Human-Capital Discrimination

Unfair treatment of workers based on their skills, education, or training rather than their performance.

Male Workers

Refers to the labor force comprising individuals who identify as male, often analyzed in economic and sociological studies concerning employment patterns, wage disparities, and labor market outcomes.