Acca financial Accounting (FA) Study Text ac ca (FA)

The accounting equation after these transactions would show: 

A 

assets $1,775 less liabilities $175 equals capital $1,600 

B 

assets $2,775 less liabilities $975 equals capital $1,200 

C 

assets $2,575 less liabilities $800 equals capital $1,775 

D 

assets $2,575 less liabilities $975 equals capital $1,600 

Inventory 

16  Tracey’s business sells three products – A, B and C. The following 

information was available at the year-end: 

 

A B C 

 $ 

$ 

$ 

 

Per 

unit 

Per 

unit 

Per 

unit 

Original cost 

7 

10 

19 

Estimated selling price 

15 

13 

20 

Selling and distribution costs 

2 

5 

6 

Units of inventory 

20 

25 

15 

What should be the inventory valuation at the year-end? 

$________ 

  

 

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PRACTICE QUESTIONS 

466

 

KAPLAN PUBLISHING

 

17  An inventory record card shows the following details:  

January  1  

50 units in inventory at a cost of $10 per unit 

4  

90 units purchased at a cost of $15 per unit 

10   65 units sold 

20   30 units purchased at a cost of $20 per unit 

26   40 units sold