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Exam IIA-CIA-Part3 topic 2 question 40 discussion

Actual exam question from IIA's IIA-CIA-Part3

Question #: 40
Topic #: 2

[All IIA-CIA-Part3 Questions]

An internal auditor found the following information while reviewing the monthly financial statements for a wholesaler of safety glasses:
Opening inventory: 1,000 units at $2 per unit
Purchased: 5,000 units at $3 per unit
Sold: 3,000 units at $7 per unit
The cost of goods sold was reported at $8,500. Which of the following inventory methods was used to derive this value?

A. Average cost method.
B. First-in, first-out (FIFO) method.
C. Specific identification method.
D. Activity-based costing method.

Show Suggested Answer

Suggested Answer: A 🗳️

by luluka at March 27, 2021, 5:35 p.m.

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Mike12345678

Highly Voted 3 years, 3 months ago

It's A (weighted average method)

upvoted 5 times

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superman26

Highly Voted 2 years, 11 months ago

the answer is A: (1000x$2) +(5000x$3) =$17,000 $17,000/6000 units = 2.8333 2.8333x 3000 units = $8,499.999

upvoted 5 times

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ciacandidate

Most Recent 11 months ago

Selected Answer: A

A is the only one correct

upvoted 3 times

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Suzan07

2 years, 7 months ago

A is correct

upvoted 2 times

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Steve8Taiwan

2 years, 8 months ago

A is correct.

upvoted 2 times

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StephanieJayne

2 years, 12 months ago

Is this correct?

upvoted 1 times

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luluka

3 years, 3 months ago

why D?

upvoted 2 times

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