The Following Lots of a Particular Commodity Were Available for Sale

question 152

Multiple Choice

The following lots of a particular commodity were available for sale during the year:

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 FIFO method?

• A)$1,685
• B)$1,575
• C)$1,805
• D)$3,585

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Definitions:

Financing Statement

A document filed to give public notice of a secured party's interest in the debtor's personal property, used in the U.S. under the Uniform Commercial Code.

Certificate of Title

An official document indicating ownership of property, such as real estate or a vehicle.

Perfect

To complete or make flawless; often used in legal contexts to denote the finalization of a right or claim.

Perfection by Possession

A process in secured transactions where a creditor secures an interest in the collateral by taking physical possession of it, ensuring priority over other creditors.