Alphabet Company, which uses the periodic inventory method, purchases different

Question

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 $2.00 per letter. In February, it purchased H thru L at $4.00 per letter. It purchased M thru R in March at $5.00 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.

$46

$21

$45

$64

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 $2.00 per letter. In February, it purchased H thru L at $4.00 per letter. It purchased M thru R in March at $5.00 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.

Explanation / Answer

So, as per above calculations, option C is the correct option

Calculations A B C = A - B D E = C x D Inventory Quantity Sales Closing Rate Value A 1 1 0 2 0 B 1 0 1 2 2 C 1 0 1 2 2 D 1 1 0 2 0 E 1 1 0 2 0 F 1 0 1 2 2 G 1 0 1 2 2 H 1 1 0 4 0 I 1 0 1 4 4 J 1 1 0 4 0 K 1 0 1 4 4 L 1 0 1 4 4 M 1 0 1 5 5 N 1 1 0 5 0 O 1 0 1 5 5 P 1 0 1 5 5 Q 1 0 1 5 5 R 1 0 1 5 5 Value 45

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