A-LevelAccountingInventory ValuationOct/Nov 2017Paper 1 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
The correct answer is A. This question tests the candidate's understanding of inventory valuation within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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