A-LevelAccountingInventory ValuationOct/Nov 2021Paper 1 Q121 Mark

William buys radios for $10 each and sells them for $15 each. His draft statement of financial position included a value of $1500 for inventory. His method of calculation of inventory was correct. He then found that 12 radios could only be sold for $8 each and 4 radios had been stolen. By how much should William reduce his inventory valuation?

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$64

B$84

C$124

D$144

✓ Correct Answer

The correct answer is A: $64

📋 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 2021 examination, Paper 1 Variant 2.

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