A-LevelAccountingInventory valuationOct/Nov 2023Paper 1 Q231 Mark
A business commenced trading on 1 January. The purchases and sales of inventory for January were as follows: date purchases sales January 4 3 at $200 each – 13 – 2 at $400 each 26 3 at $250 each – 28 – 2 at $400 each The business used the first in first out (FIFO) method of inventory valuation. What was the gross profit for January?
A$250
B$650
C$700
D$750
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of inventory valuation within the Accountingsyllabus. The examiner's mark scheme requires...
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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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