Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

At the end of the year, Victor held 100 units of inventory, each of which cost $12 per unit. From this total, eight units were delivered on the final day of the year and had not yet been paid for. A further six units were damaged and could be sold for $10 each after repairs costing a total of $20 had been carried out. What value of inventory should be shown in Victor’s financial statements at the end of the year?

  • A$1072
  • B$1092
  • C$1168
  • D$1188

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