Alphabet Company Buys Different Letters for Resale

question 15

Multiple Choice

Alphabet Company buys different letters for resale.It buys A thru G on January 1 at $4 per letter,and sells A and E on January 15.On February 1,it buys H thru L at $6 per letter and sells D,H and J on February 9.It then buys M thru R on March 1 at $7 per letter and sells N on March 19.If the company uses the LIFO method on a perpetual basis,what is the cost of its ending inventory (rounded to the nearest dollar) ?

• A)$58
• B)$67
• C)$72
• D)$76

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Definitions:

Cannon-Bard Theory

A theory in psychology suggesting that emotional experiences occur simultaneously with physiological responses, rather than one causing the other.

Tranquilizing Drugs

Medications used to reduce tension or anxiety, often by depressing central nervous system activity.

Sympathetic Nervous system

Part of the autonomic nervous system that prepares the body for rapid action in response to stress by accelerating heart rate, dilating pupils, and other physiological changes.

Subjective Experience

Personal interpretations or perceptions of events or situations, influenced by individual emotions, and thoughts.