Panamerican Foods, which uses the periodic inventory method, buys and sells barrels of aged balsamic vinegar. Panamerican had no beginning inventory. It purchased seven barrels in January at $3.50 per barrel. In February, it purchased five barrels at $5.50 per barrel. It purchased six barrels in March at $6.50 per barrel. It sold six barrels in October. There were no additional purchases or sales during the remainder of the year. If Panamerican Foods uses the FIFO method, what is the cost of its ending inventory?

Multiple Choice

• $70

• $39

• $21

• None of the other answers are correct.

• $52