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

question 23

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 rounded to the nearest dollar using the average cost method?

• A) $1,685
• B) $1,575
• C) $1,805
• D) $3,705

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Definitions:

Shareholders' Equity

The leftover value in a company's assets once all debts are subtracted, symbolizing the stake of ownership.

Share Capital

The amount of money raised by a company through the sale of shares, representing the funding provided by shareholders.

Current Liabilities

Financial obligations or debts a company is expected to settle within one fiscal year or its operating cycle, whichever is longer.