A-LevelAccountingInventory ValuationFeb/Mar 2022Paper 1 Q241 Mark
A retailer made the following purchases of inventory in October. 5 Oct: 50 units at $500, total cost $25000; 12 Oct: 50 units at $500, total cost $25000; 23 Oct: 150 units at $525, total cost $78750. Total cost $128750. There was no opening inventory for October. The business uses the first-in first-out (FIFO) method to value its inventory. In October, 200 units were sold for $900 each. What was the gross profit for October?
A$76667
B$77000
C$77 500
D$96 250
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of inventory valuation within the Accountingsyllabus. The examiner's mark scheme requires...
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