A-LevelAccountingManufacturing Accounts / Inventory ValuationOct/Nov 2009Paper 1 Q101 Mark
The financial year of a manufacturer ends on 31 December. Finished goods are valued at factory cost plus 20%. The following information is available. 1 January $ 31 December $ stock of finished goods at cost plus 20% 2400 3000 How much should be deducted from the stock of finished goods in the balance sheet at 31 December for unrealised profit?
A$100
B$400
C$500
D$600
✓ Correct Answer
The correct answer is C: $500
📋 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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