The Following Lots of a Particular Commodity Were Available for Sale

question 129

Multiple Choice

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 the inventory at the end of the year using the average cost method?

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

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Definitions:

Historical Beta

A measure of an asset's volatility in relation to the market, based on past price movements, indicating its risk compared to the market.

Expected Future Beta

Expected future beta relates to the projection of a security's sensitivity to movements in the overall market, indicating its expected risk level relative to the market.

Correlation Coefficient

The Correlation Coefficient is a numerical measure that quantifies the strength and direction of a linear relationship between two variables on a scale from -1 to 1.

Standard Deviation

A measure of the dispersion or variation in a set of values, used to quantify the degree of variation or diversity.