Alphabet Company, Which Uses the Periodic Inventory Method, Purchases Different

question 31

Multiple Choice

Alphabet Company, which uses the periodic inventory method, purchases different letters for resale.Alphabet had no beginning inventory.It purchased A thru G in January at $4 per letter.In February, it purchased H thru L at $6 per letter.It purchased M thru R in March at $7 per letter.It sold A, D, E, H, J and N in October.There were no additional purchases or sales during the remainder of the year.
-Use the information above to answer the following question.If Alphabet Company uses the FIFO method,what is the cost of its ending inventory?

• A) $24
• B) $42
• C) $58
• D) $76

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Definitions:

Automatic Responses

Reflex actions or instinctual reactions that occur without conscious thought, often as a result of learned behaviors or biological predispositions.

Voluntary Responses

Reactions that are consciously controlled and performed by an individual in response to external stimuli.

Inborn

Inborn refers to characteristics, traits, or abilities that are present from birth, as opposed to those acquired or learned over time.

Automatic Connection

The unconscious linking of thoughts, emotions, or behaviors based on past experiences, habits, or biological factors.