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

question 42

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 LIFO method,what is the cost of its ending inventory (rounded to the nearest dollar) ?

• A)$24
• B)$42
• C)$58
• D)$76

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Definitions:

Quantity Demanded

The total amount of a product that consumers are willing and able to purchase at a specific price in a given time period.

Electricity

A form of energy resulting from the existence of charged particles, commonly used for power and lighting.

Quantity Demanded

represents the total amount of a product or service consumers are willing and able to purchase at a given price level, within a specific time period.

Price Inelastic

Describes a situation where the demand for a good or service does not significantly change with a change in its price.