Accounting 0452 · IGCSE · Valuation of inventory

Valuation of inventory — practice question

Medway social club operates a café for its members. For the year ended 31 December, sales amounted to $15000$ and the cost of goods sold totalled $12000$. The closing inventory of coffee was recorded at a cost value of $1000$ but had deteriorated so that its worth was $500$. What profit from the café should be transferred to the income and expenditure account?

  • A$2000
  • B$2500
  • C$3000
  • D$3500

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