A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2025 · Q231 Mark

On 1 March, a business had an inventory of 3 items which had cost $8 each. The business uses the FIFO method of valuing inventory. During March the following transactions occurred. March 10: purchases 16 units at $7 each March 18: purchases 14 units at $6 each March 27: issues 24 units at $10 each What was the value of inventory at the end of March?

A$36

B$42

C$54

D$63

✓ Correct answer

C: $54

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2025 Paper 1 Variant 2, question 23.

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