A Company Has Beginning Inventory of 10 Units at a Cost

question 130

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

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Definitions:

Diels-Alder

A [4+2] cycloaddition reaction between a conjugated diene and a dienophile forming six-membered rings.

Diels-Alder

A chemical reaction between a conjugated diene and a substituted alkene (dienophile) to form a cyclic compound.

Reactivity

The tendency of a chemical substance to undergo a chemical reaction either by itself or with other materials.

Diene

Organic compounds containing two double bonds, often involved in polymerization and other chemical reactions.