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CIMAPRA19-F01-1 Exam - Topic 5 Question 120 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 120
Topic #: 5
[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 Domitila at Jan 05, 2026, 05:16 AM

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Lelia
3 days ago
Hmm, I'm not sure. Maybe B) 7.50 or D) 3.50? This question is making my head spin.
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Kimberlie
8 days ago
C) 20.00 has got to be the correct answer. They're selling it for a quarter of the original price, so the inventory price should be the full production cost.
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Jaclyn
14 days ago
D) 3.50 seems like the right answer. They're selling it for 25% of the original price, so the inventory price should be 25% of 7.50.
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Jules
19 days ago
I think the answer is B) 7.50. That's the cost to produce the original product H, so it should be the same for the faulty version I.
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Paz
24 days ago
If product I is sold for 25% of the original price of 89.99, that would be around 22.50, but I’m confused about how that relates to the inventory price.
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Tashia
29 days ago
This question reminds me of a practice problem where we had to determine the selling price after discounts. I wonder if the 25% off applies to the total cost or just the production cost.
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Kerrie
1 month ago
I think product I should be priced based on its production cost, but I can't recall if we include packaging and delivery in that calculation.
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Ryan
1 month ago
I remember we discussed how to calculate the cost of goods sold, but I'm not sure if that applies directly here.
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Barbra
1 month ago
Alright, let's break this down. Product H costs 7.50 to produce, 5.00 to package, and 15.00 to deliver, for a total of 27.50. It's sold for 89.99, so the margin is pretty high. For the faulty product I, it's being sold at 25% of the original price, which would be 22.50. But the question is asking for the inventory price, not the selling price. Hmm, I'm not sure about this one.
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German
2 months ago
I think the key here is to calculate the cost of producing the faulty product I, since it's being sold at a discounted price. If the original product H costs 27.50 to make, then 25% of that would be 6.875, which rounds to 7.50. So I'm going with option B.
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Viki
2 months ago
Okay, let's see. The original product H costs 7.50 to produce, plus 5.00 for packaging and 15.00 for delivery. So the total cost is 27.50. The selling price is 89.99, so the margin is pretty high. But for the faulty product I, it's being sold at 25% of the original price, so I'll need to figure out what that works out to.
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Kristal
2 months ago
Hmm, this seems like a tricky one. I'll need to carefully calculate the costs and margins to determine the correct inventory price for the faulty product.
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