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:

Income Equality

A situation in which earnings are distributed evenly across a population, minimizing the gap between the highest and lowest incomes.

European Countries

Nations located within the continent of Europe, each characterized by its own government, culture, and economic system.

Means-Tested Programs

These are government assistance programs only available to individuals who fall below a certain income level.

Low Incomes

Earnings that fall below the average or median income level within a given region or economy.