A-LevelAccountingInventory ValuationFeb/Mar 2025Paper 1 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
The correct answer is C: $54
📋 Examiner Report & Trap Analysis
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...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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