A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2017 · Q111 Mark

A business has 500 items of inventory at a cost price of $3 each. The selling price per unit is based on a mark-up of 20%. Before sale, the items need to be repaired at a total cost of $400. What is the net realisable value of the inventory?

A$1400

B$1475

C$2200

D$2275

✓ Correct answer

A: $1400

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2017 Paper 1 Variant 2, question 11.

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