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:

Supply Base

The network of suppliers from which a company procures its goods, services, and materials.

Competitiveness

The ability of a company, country, or product to compete effectively and successfully in the market.

Purchased Materials

Goods and components bought from external suppliers for use in manufacturing processes or for resale.

Commodity Manager

A professional responsible for procuring raw materials, goods, or services in a specific commodity area, often focusing on strategy, supplier selection, and price negotiation.