A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2021 · Q221 Mark

A company receives the following units of raw material into inventory. units per unit $ total $ 120 38 4560 100 40 4000 60 44 2640 It then issued 240 units. Inventory is valued using the weighted average (AVCO) method. What was the closing value of inventory?

A$1440

B$1520

C$1600

D$1760

✓ Correct answer

C: $1600

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2021 Paper 1 Variant 2, question 22.

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