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

question 39

Multiple Choice

Alphabet Company,which uses the periodic inventory method,buys different letters for resale.It buys A through G in January at $4 per letter.It buys H through L at $6 per letter.It buys M through R in March at $7 per letter.It sells A,D,E,H,J and N in April. If the company uses the specific identification method,what is the cost of its ending inventory?

• A)$31
• B)$69
• C)$76
• D)$100

---

Definitions:

Goods in Process Inventory

An account in the inventory accounting that represents the cost of unfinished goods in the production process at a particular time.

Factory Overhead

The indirect costs associated with manufacturing, not directly tied to specific units produced, such as maintenance, utilities, and management salaries.