11 Grays Company has the following purchases and sales during the month of August. Using the FIFO perpetual inventory method, what amount will bereported as cost of goods sold for the 12 units that were sold?DateActivitiesUnits Acquired at Cost10 units @ $10 = $10020 units@ $12 = $240Units Sold at RetailAugust 1Beginning inventoryAugust 3PurchaseAugust 6Sales12 units soldMultiple Choice$128.$130.$124.$140.

Under the perpetual method, the inventory is tracked continuously. Alternatively, a perpetual…

Answered: Date Activities Units Acquired at Cost…

Date Activities Units Acquired at Cost 10 units @ $10 August 1 Beginning inventory = $100 August 3 Purchase 20 units e $12 $240 %3D August 6 Sales

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 4PEB: Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory...

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Question

Grays Company has the following purchases and sales during the month of August. Using the FIFO perpetual inventory method, what amount will be
reported as cost of goods sold for the 12 units that were sold?
Date
Activities
Units Acquired at Cost
10 units @ $10 = $100
20 units@ $12 = $240
Units Sold at Retail
August 1
Beginning inventory
August 3
Purchase
August 6
Sales
12 units sold
Multiple Choice
$128.
$130.
$124.
$140.

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