A-LevelAccountingInventory ValuationMay/June 2018Paper 1 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
The correct answer is A. 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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