A-LevelAccountingInventory ValuationOct/Nov 2019Paper 1 Q131 Mark

A warehouse was damaged by fire on 31 March and some of the inventory was destroyed. The following information is available. $ inventory at cost on 1 January 6000 inventory at cost on 31 March after fire 3200 sales during the period 14 700 purchases during the period 9500 The business uses a mark-up of 33.33%. What was the value of the inventory destroyed?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is A: $1275.

Q: What topic does this question test?

This question tests Inventory Valuation in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$1275

B$1800

C$2000

D$2500

✓ Correct Answer

The correct answer is A: $1275

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Inventory Valuation in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2019 examination, Paper 1 Variant 2.

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