A-LevelAccountingInventory ValuationFeb/Mar 2018Paper 1 Q91 Mark
A company has a year-end of 31 December. Its inventory records on that date showed an inventory of 600 units with a cost of $10 each. A fire on 31 December had totally destroyed 100 units and caused a further 50 units to be damaged. These would cost $7 each to be repaired. The inventory records had not been adjusted for the fire. The selling price is $15 per unit. What is the value of the inventory to be used in the financial statements at 31 December?
A$4500
B$4850
C$4900
D$5400
✓ 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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