The cost of 12 units sold is $126 .
<h3>What is FIFO ?</h3>
FIFO is the short form for the accounting method First in First Out , The inventory that has entered first will be exited first .
It is given that
On August 1, the company had 6 items of beginning inventory with a cost of $7 per unit.
On August 3, the company purchased 16 units at $14 per unit.
on August 5, the company sold 12 units
The units that will be sold first will be the those that have taken in first
$7 * 6 + $14* 6
42 + 84
$126
Therefore the cost of 12 units sold is $126 .
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