A Company Has Inventory of 10 Units at a Cost

question 179

Multiple Choice

A company has inventory of 10 units at a cost of $10 each on June 1. On June 3, it 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.

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Definitions:

Imports

Goods or services brought into a country from abroad for sale.

Domestic Market

The supply and demand for goods and services within a country's borders.

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Devices that shave away the wooden surface of a pencil to expose more of the lead, enabling finer writing or drawing.