Grays Company Has Inventory of 10 Units at a Cost

question 118

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

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Definitions:

Light-Sensitive

The quality of being responsive or reactive to light, often referring to certain cells in the retina or materials that change when exposed to light.

Inner Portion

Refers to the internal part or area of something, often implying a core or central component.

Pupil

The adjustable opening in the center of the eye through which light enters, and whose size is regulated by the iris.

Physical Development

The process that starts in human infancy and continues into late adolescent concentrating on gross and fine motor skills as well as puberty.