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IIA Exam IIA-CIA-Part3 Topic 10 Question 102 Discussion

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

Question #: 102
Topic #: 10

[All IIA-CIA-Part3 Questions]

An organization has 10,000 units of a defect item in stock, per unit, market price is $10$; production cost is $4; and defect selling price is $5. What is the carrying amount (inventory value) of defects at your end?

A$0

B$4,000

C$5,000

D$10,000

Show Suggested Answer

Suggested Answer: C

by Venita at May 05, 2025, 05:41 AM

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Aron

1 months ago

I think the carrying amount of defects is $10,000.

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Kelvin

1 months ago

I believe the carrying amount of defects is $4,000.

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Amina

1 months ago

Ah, the age-old question: how to make the most out of a bad situation. I'm feeling a bit defective myself, so I'll go with option B. Treat yo'self, right?

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Meghann

6 days ago

I'll join you with option B, $4,000.

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Lillian

28 days ago

I'm going with option D, $10,000.

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Lenna

30 days ago

I think I'll go with option C, $5,000.

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Nickolas

1 months ago

I agree with Billye, the carrying amount should be $5,000.

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Rocco

1 months ago

Seriously? $10,000? Did someone forget to carry the one or something? This is basic inventory accounting, people. Option D is the only way to go.

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Billye

2 months ago

I think the carrying amount of defects is $5,000.

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Lai

2 months ago

Wait, hold up. If the defect selling price is $5, and we have 10,000 units, shouldn't the carrying amount be $50,000? I'm going with option C.

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Tonette

28 days ago

You're right, the carrying amount is calculated based on the production cost. It's $4,000. Option B is correct.

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Tonette

1 months ago

No, the carrying amount is based on the production cost, not the selling price. It's $4,000. Choose option B.

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Micheal

2 months ago

Hmm, let's see, $4 production cost per unit and 10,000 units? Sounds like a clear-cut case to me. Option B all the way!

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Brent

1 months ago

Great, thanks for confirming!

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Emmett

2 months ago

That's correct, the carrying amount of defects would be $4,000.

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Lorean

2 months ago

Option B) $4,000

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