A Level Accounting (9706)•9706/13/M/J/22
Explanation
Inventory valuation requires sales quantity for closing units Steps:
- Identify purchases: 330 units at 50 on 1 November (total 618 units, total cost $30,900).
- Calculate AVCO: 50 per unit.
- Determine closing units: total purchased minus units sold.
- Value closing inventory: closing units × $50, rounded to nearest dollar. Not enough information: Sales quantity is ambiguous or missing, preventing calculation of closing units. Why B is correct: N/A—cannot verify without sales data. Why the others are wrong:
- A, C, D: All require known sales quantity to match any value. Final answer: Not enough information.
Topic: Preparation of financial statements
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