The Following Lots of a Particular Commodity Were Available for Sale

question 31

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:

Aggregate Planning

A marketing activity that aims to balance supply and demand by determining the most efficient level of production over a given time frame.

MRP

Material Requirements Planning, a system for managing manufacturing processes by determining material requirements and scheduling production activities.

Gross Material Requirements

The total amount of raw materials needed to produce a particular quantity of finished goods, without accounting for waste or efficiency variations.

Inventory On Hand

The total quantity of goods available and stored by a business at any given time.