Day: October 7, 2023

Accounting Multiple Choice Question – 7 October 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex Trading Ltd uses the weighted average cost (AVCO) method of stock valuation.

During March the following transactions took place.

  • 1 March – opening stock 200 units at £6.00 per unit – £1,200
  • 14 March – received 300 units at £6.50 per unit – £1,950
  • 20 March – issued 250 units to production at £7.00 per unit – £1,750
  • 28 March – received 100 units at £6.70 per unit – £670

What is the value of stock at 31 March?

Select ONE answer:

  1. £2,195
  2. £2,245
  3. £2,295
  4. £2,450

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 == > (£1,200 + £1,950) / 500 = £6.3 * 250 + £670
  3. Not correct
  4. Not correct

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