Alphabet Company Buys Different Letters for Resale

question 51

Multiple Choice

Alphabet Company buys different letters for resale.It buys A thru J on January 1 at $4 per letter,and sells C on January 15.On February 1,it buys K and L at $6 per letter and sells A and K on February 9.It then buys M thru O on March 1 at $7 per letter and sells F,L,M,N,and O on March 19.If the company uses the LIFO method on a perpetual basis,what is the cost of goods sold for the three months ended March 31 (rounded to the nearest dollar) ?

• A)$32
• B)$41
• C)$45
• D)$56

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Definitions:

Core Peripheral Country

A concept in world-systems theory describing countries that dominate in terms of advanced technology, financial resources, and economic influence, as opposed to peripheral countries that are dependent and exploited.

Geopolitically Important

Having significant influence or strategic value in global politics and international relations.

Financial Assistance

Support given in the form of money to individuals or organizations in need, often provided by governments, institutions, or private entities.

Dependency Theory

A social science theory proposing that economic development in a global context is structured by the exploitation and dependency relationships between wealthy, developed countries and poorer, underdeveloped nations.