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

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 LIFO method,what is the cost of its ending inventory?

A) $24
B) $42
C) $58
D) $76