A Company Has Inventory of 10 Units at a Cost

question 27

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 perpetual inventory method, what is the cost of the 12 units that were sold?

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

Identify diseases related to the gastrointestinal and urinary systems.

Understand the meaning and application of prefixes in medical terminology.

Understand the meaning and application of suffixes in medical terminology.

Understand the meaning and application of combining forms in medical terminology.

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Definitions:

Machine Hours

A measure of the amount of time a machine is used in the production process, often used as a basis for allocating manufacturing overhead costs.

Plantwide Overhead Rate Method

A method of allocating manufacturing overhead costs to products based on a single, plant-wide rate, often using direct labor hours or machine hours as the allocation base.

Cost Objects

Any item for which a separate measurement of costs is desired; examples include a product, a service, a project, or a customer.

ABC

Can refer to Activity-Based Costing, a method of assigning costs to products or services based on the resources they consume.