A-LevelAccountingInventory ValuationOct/Nov 2024Paper 1 Q241 Mark

The inventory movements of a business in a three-month period are shown. receipts month | units | cost per unit | issues units January | 100 | $5 | January | 200 | $6 | February | | | 50 March | | | 200 The business uses the first in first out (FIFO) method of inventory valuation. What was the value of inventory at the end of March?

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$250

B$275

C$283

D$300

✓ Correct Answer

The correct answer is D: $300

📋 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 2024 examination, Paper 1 Variant 2.

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