A-LevelAccountingInventory ValuationMay/June 2017Paper 1 Q101 Mark
A business provides the following information. year 1 $ year 2 $ profit for the year 30 000 40000 cost of goods sold 240 000 320 000 The owner then discovers that at the end of year 1 the value of inventory was overstated by $2000. What are the correct profits for the year and cost of goods sold figures?
Ayear 1 profit for the year $ 28 000 cost of goods sold $ 238 000 year 2 profit for the year $ 42000 cost of goods sold $ 322 000
Byear 1 profit for the year $ 28 000 cost of goods sold $ 242000 year 2 profit for the year $ 40000 cost of goods sold $ 320 000
Cyear 1 profit for the year $ 28000 cost of goods sold $ 242 000 year 2 profit for the year $ 42000 cost of goods sold $ 318000
Dyear 1 profit for the year $ 32000 cost of goods sold $ 238 000 year 2 profit for the year $ 38 000 cost of goods sold $ 318000
✓ 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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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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