Accounting Multiple Choice Question – 3 December 2021

A company has two items in stock which require to be repaired before sale.

  cost £   selling price £   repair costs £

item 1   5 260   7 600   880

item 2   2 360   2 450   190

What is the total stock value of these items?

Select ONE answer:

1. £6,550
2. £7,520
3. £7,620
4. £8,980

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct ==> £5,260 +(£2,450 – £190 Lower of cost or NRV)
3. Not correct
4. Not correct

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