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Alphabet Company, which uses the periodic inventory method, purchases different letters for resale. Alphabet had no...

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Accounting

Alphabet Company, which uses the periodic inventory method,purchases different letters for resale. Alphabet had no beginninginventory. It purchased A thru G in January at $4 per letter. InFebruary, it purchased H thru L at $6 per letter. It purchased Mthru R in March at $7 per letter. It sold A, D, E, H, J and N inOctober. There were no additional purchases or sales during theremainder of the year.

If Alphabet Company uses the specific identification method, whatis the cost of its ending inventory?

Multiple Choice

  • $31

  • $69

  • $76

  • $100

Answer & Explanation Solved by verified expert
3.9 Ratings (608 Votes)

Correct answer---$69

Units available for sale

Cost per unit

Units sold

Units unsold

Ending inventory value

A

$       4.00

Yes

B

$       4.00

B

$       4.00

C

$       4.00

C

$       4.00

D

$       4.00

Yes

E

$       4.00

Yes

F

$       4.00

F

$       4.00

G

$       4.00

G

$       4.00

H

$       6.00

Yes

I

$       6.00

I

$       6.00

J

$       6.00

Yes

K

$       6.00

K

$       6.00

L

$       6.00

L

$       6.00

M

$       7.00

M

$       7.00

N

$       7.00

Yes

O

$       7.00

O

$       7.00

P

$       7.00

P

$       7.00

Q

$       7.00

Q

$       7.00

R

$       7.00

R

$       7.00

Total Ending inventory value

$    69.00

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