At the beginning of that year 2013, Lancer Inc. had 50 units in its inventory, each costing $4. In January, Lancer Inc. purchased 30 units for $5 each. On January 31, Lancer, Inc. sold 20 units. Assuming a FIFO cost flow assumption, what would be Lancer, Inc.'s cost of goods sold?

a. $120
b. $100
c. $150
d. $80
e. $200

Answer: d. $80

Business

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