A-LevelAccountingInventory ValuationOct/Nov 2011Paper 1 Q161 Mark
A trader buys and sells garden fertiliser in 50 kilo units. Inventory at 1 July was 250 units valued at $16 per unit. Purchases and sales during the month were as follows. date purchases (units) sales (units) 3 July sales 100 11 July purchases ($13 per unit) 200 14 July sales 200 25 July purchases ($14 per unit) 200 29 July sales 200 The FIFO method is used to value inventory. What is the value of the closing inventory at 31 July?
A$1950
B$2100
C$2400
D$4000
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of inventory valuation within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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