Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

A business holds $500$ units of inventory, each bought for $3$. A mark-up of $20\%$ is used to set the selling price per unit. Prior to being sold, the units must be repaired, and this costs $400$ in total. What is the net realisable value of the inventory?

  • A$1\,400$
  • B$1\,475$
  • C$2\,200$
  • D$2\,275$

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