The Following Lots of Commodity Z Were Available for Sale

question 2

Multiple Choice

The following lots of Commodity Z were available for sale during the year. Use this information to answer the questions that follow.
$$\begin{array} { l l } \text { Beginning inventory } & 10 \text { units at } \$ 30 \\\text { First purchase } & 25 \text { units at } \$ 32 \\\text { Second purchase } & 30 \text { units at } \$ 34 \\\text { Third purchase } & 10 \text { units at } \$ 35\end{array}$$ ​
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-The firm uses the periodic system, and there are 20 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the FIFO method?

• A) $655
• B) $620
• C) $690
• D) $659

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Definitions:

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Fixed Costs

Financial obligations like rent, salaries, and insurance that do not vary with changes in production or sales figures.

Utilization Rate

Typically refers to the ratio of currently used resources to the total available resources, often used in the context of credit utilization or operational capacity.

Net Income

The total earnings or profit of a person or company after deducting all expenses and taxes.