A-LevelAccountingPreparation of financial statements9706/12 · May/June 2018 · Q241 Mark

A business values their inventory using the AVCO method. The inventory on 1 June 2017 was 100 units valued at $2.40 each. The following took place. June 5 purchased 40 units at $2.50 per unit 7 sold 60 units at $3.50 per unit What was the value of the inventory on 8 June 2017 to the nearest dollar?

A$194

B$196

C$200

D$224

✓ Correct answer

A: $194

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2018 Paper 1 Variant 2, question 24.

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