A-LevelAccountingInventory ValuationFeb/Mar 2022Paper 1 Q121 Mark
The year end of a business is 31 December 2021. On 5 January 2022, inventory was counted and valued at cost, $30000. The following was then discovered. 1 Goods purchased and received after the year end, costing $1500, had been included in the valuation. 2 It included goods returned by a customer after the year end. They had a selling price of $900 which included a mark-up of 25% during the year. 3 Some goods included in the inventory, costing $500, were damaged. They can be sold for $300 after repairs costing $100. Which value of inventory should be included in the financial statements at 31 December 2021?
A$27480
B$27 525
C$28275
D$29270
✓ Correct Answer
The correct answer is A. 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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