Charter Company,which Uses the Perpetual Inventory Method,purchases Different Letters for Resale.Character

Multiple Choice

Charter Company,which uses the perpetual inventory method,purchases different letters for resale.Character had a beginning inventory comprised of seven units at $4 per unit.The company purchased five units at $6 per unit in February,sold seven units in October,and purchased two units at $7 per unit in December. If Charter Company uses the LIFO method,what is the cost of its ending inventory?

A) $38
B) $34
C) $44
D) $72