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 $7.50 per letter. In February, it purchased H thru L at $9.50 per letter. It purchased M thru R in March at $10.50 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. If Alphabet Company uses the specific identification method, what is the cost of its ending inventory?

Relax

Respuesta :

Answer:

$111

Explanation:

Purchases;

A-G 7*7.5               $52.5

H-L 5*9.5               $47.5

M-R 6*10.5             $63

Total Purchases    $163

Less;Sales

A,D,E 3*7.5             ($22.5)

H,J 2*9.5                 ($19)

N      1*10.5               ($10.5)

Total Sales               ($52)

Ending Inventory Cost =(purchases-sales)=$163-$52=$111

Answer:

Explanation:

Particulars

Amount($)

B

7.5

C

7.5

F

7.5

G

7.5

I

9.5

K

9.5

L

9.5

M

10.5

O

10.5

P

10.5

Q

10.5

R

10.5

Cost of ending inventory  

111