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.