A Company Has Inventory of 10 Units at a Cost

question 56

Multiple Choice

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

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

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Definitions:

Operational Plans

Detailed, short-term plans that outline how to achieve an organization's strategic objectives, focusing on specific tasks and responsibilities.

Strategic Plans

Long-term, detailed action plans designed to achieve an organization's goals and objectives.

Organisational Objectives

Defined goals and aims that a business or an organization seeks to achieve, guiding its strategy and operational activities.

Mitigation Planning

The process of developing strategies and actions to reduce or eliminate risks and their potential impacts on an organization or project.