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:

Painful Erection

An erection that causes pain or discomfort, which can be a symptom of medical conditions such as priapism.

Phimosis

A condition where the foreskin of the penis cannot be fully retracted over the glans, which can lead to discomfort or infection.

Foreskin

The retractable fold of skin covering the head of the penis in uncircumcised males.

Glans

The sensitive bulbous structure at the distal end of the penis or clitoris, often involved in sexual arousal and pleasure.