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CIMA Exam CIMAPRA19-F01-1 Topic 1 Question 95 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 95
Topic #: 1
[All CIMAPRA19-F01-1 Questions]

It costs PWR 7.50 to produce product H, per product. Product H is typically sold for 89.99. It costs 5.00 to package product H and 15 to deliver product H to customers.

PWR is currently selling faulty versions of product H from a defunct batch, (let's call this version product I), for 25% of the original price.

Which of the below options represent the correct inventory price for product I?

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Suggested Answer: A

by Brett at Aug 23, 2024, 08:57 PM

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Buck
19 days ago
This question is making my head spin. I think I need to take a break and get a cup of coffee. Or maybe a double shot of espresso. Either way, I'm going with B, 7.50. It's the safest bet.
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Alfred
25 days ago
Aha! I got it! The question says they're selling the faulty versions, so the inventory price should be the production cost of 7.50. Easy peasy!
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Bethanie
26 days ago
Hmm, I'm not sure about this one. Let me break it down... Production cost of 7.50, plus packaging of 5.00, and delivery of 15.00, that's a total of 27.50. 25% of the original price is 22.50. I think the answer is C, 20.00.
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Glenn
27 days ago
Wait, hold on a second. If the original price was 89.99, and they're selling it for 25% of that, then the inventory price should be 22.50, not 2.50. This seems like a trick question.
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Earleen
9 days ago
A) 2.50
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Arlene
2 months ago
But if the faulty product is being sold for 25% of the original price, it should be 7.50.
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Linn
2 months ago
Okay, let's see... If it costs 7.50 to produce product H, and it's being sold for 25% of the original price, then the inventory price for product I should be 2.50. Seems pretty straightforward to me.
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Jessenia
10 days ago
Yeah, that makes sense. It's 25% of the original price of 10.00, which is 2.50.
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Norah
24 days ago
I think the correct inventory price for product I is 2.50.
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Rosina
2 months ago
I disagree, I believe it should be 2.50.
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Arlene
2 months ago
I think the correct inventory price for product I is 7.50.
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