A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2020 · Q221 Mark

A manufacturer uses the weighted average cost (AVCO) method of inventory valuation. Opening inventory was 10 units at $50 each. During the month: 30 units were purchased costing $70 each. 20 units were sold at $80 each. What was the value of the inventory at the end of the month?

A$1200

B$1300

C$1400

D$1600

✓ Correct answer

B: $1300

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2020 Paper 1 Variant 2, question 22.

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