A-LevelAccountingInventory ValuationMay/June 2018Paper 1 Q111 Mark

At the beginning of the financial year inventory was valued at $15000. During the year, sales of $21000 and purchases of $18000 were made. Unfortunately, all inventory was stolen on the last day of the financial year. Goods are marked up by 50% to calculate selling price. What is the cost of the stolen inventory?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is C: $19000.

Q: What topic does this question test?

This question tests Inventory Valuation in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$7500

B$11000

C$19000

D$22500

✓ Correct Answer

The correct answer is C: $19000

📋 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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About This A-Level Accounting Question

Topic

This multiple-choice question tests Inventory Valuation in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting May/June 2018 examination, Paper 1 Variant 2.

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