Day: March 1, 2023

A business has two items in stock which need to be repaired before sale.

• item 1 – Cost £2,160 & Selling Price £2,450 & Repair Costs £190
• item 2 – Cost £3,190 & Selling Price £3,060 & Repair Costs £320

What is the total stock value of these items?

Select ONE answer:

1. £4,900
2. £5,000
3. £5,510
4. £5,640

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 1

1. Correct – Item 1 £2,160 + Item 2 (£3,060 – £320) = £4,900 using Lower Of Cost or NRV rule
2. Not correct
3. Not correct
4. Not correct

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