Charter Company, which uses the perpetual inventory method, purchases different letters for resale. Character had a beginning inventory comprised of ten units at $5 per unit. The company purchased six units at $7 per unit in February, sold eight units in October, and purchased three units at $8 per unit in December.

Use the information above to answer the following question. If Charter Company uses the LIFO method, what is the cost of its ending inventory?

$56

$116

$52

$64

Use the information above to answer the following question. If Charter Company uses the LIFO method, what is the cost of goods sold for the year?

$116

$56

$52

$64