Use the Information Below to Answer the Following Questions The Firm Uses the Periodic System, and There Are 25

question 201

Multiple Choice

Use the information below to answer the following questions.
The following lots of a particular commodity were available for sale during the year:
$\begin{array}{ll}\text { Beginning inventory } & 10 \text { units at } \$ 60 \\\text { First purchase } & 25 \text { units at } \$ 65 \\\text { Second purchase } & 30 \text { units at } \$ 68 \\\text { Third purchase } & 15 \text { units at } \$ 75\end{array}$ The firm uses the periodic system, and there are 25 units of the commodity on hand at the end of the year.
-What is the amount of inventory at the end of the year using the LIFO method??

• A) $1,685
• B) $1,575
• C) $1,805
• D) $3,815

---

Definitions:

Quota Rent

Extra income earned by producers who benefit from an import quota, as it raises the market price of their goods.

Demand Price

The price at which consumers are willing to buy a specific quantity of a good or service at a given time.

Supply Price

The minimum price at which a producer is willing to sell a particular quantity of a good or service.

Price Ceiling

A legal maximum price that can be charged for a good or service.