Grays Company has inventory of 10 units at a cost of $10 each on August 1. On August 3, it purchased 20 units at $12 each. 12 units are sold on August 6. Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 12 units that were sold?
A) $130.
B) $120.
C) $128.
D) $124.
E) $140.

Question

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The Answer of Grays Company has inventory of 10 units at a cost of $10 each on August 1. On August 3, it purchased 20 units at $12 each. 12 units are sold on August 6. Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 12 units that were sold?
A) $130.
B) $120.
C) $128.
D) $124.
E) $140.

Grays Company Has Inventory of 10 Units at a Cost