Alphabet Company,which Uses the Periodic Inventory Method,purchases Different Letters for Resale.Alphabet

question 150

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. If Alphabet Company uses the specific identification method,what is the cost of its ending inventory?

• A)$31
• B)$69
• C)$76
• D)$100

---

Definitions:

Chemical Energy

A form of potential energy stored in chemical bonds between atoms and molecules.

Just Noticeable Difference (JND)

The smallest difference in stimulation that a person can detect 50% of the time; a measure of sensory sensitivity.

Just Noticeable Difference

The smallest difference in stimulus intensity that a specific sense can detect.

Proportional Difference

The comparison between two quantities or measurements in terms of their ratio or relative size.