Accounting Multiple Choice Question – 7 March 2022

Lucy provided the following financial information for the year ended 31 December 2021

• purchases – £95,000
• returns inwards – £3,300
• returns outwards – £2,100
• inventory withdrawn for personal use – £4,000
• Inventory on 31 December 2021 was valued at £1,000 more than on 1 January 2021.

What was the cost of sales?

Select ONE answer:

1. £85,700
2. £87,900
3. £89,000
4. £97,100

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 ==> £0 + £95,000 – £1,000 – £2,100 – £4,000
3. Not correct
4. Not correct

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