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

Multiple Choice

• $63

• $45

• $100

• $118