Alphabet Company Buys Different Letters for Resale

question 46

Multiple Choice

Alphabet Company buys different letters for resale.It buys A thru J on January 1 at $4 per letter,and sells C on January 15.On February 1,it buys K thru L at $6 per letter and sells A and K on February 9.It then buys M thru O on March 1 at $7 per letter and sells F,L,M,N,and O on March 19.If the company uses the LIFO method on a perpetual basis,what is the cost of goods sold?

• A)$32
• B)$41
• C)$45
• D)$56

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Definitions:

Pancreas

An organ in the abdominal cavity involved in digestion and blood sugar regulation, producing digestive enzymes and insulin.

Female Pelvis

The lower part of the trunk of the human body between the abdomen and the thighs; in females, it includes the structures involved in reproduction.

Ovaries

Female reproductive organs in which eggs are produced and hormones like estrogen and progesterone are secreted.

Mammary Glands

Glands located in the breasts of female mammals that produce milk to feed young offspring.