Accounting Online Program Certification Practice Test 2026 – Your All-in-One Guide to Exam Success!

To determine the correct closing inventory value after adjustments for raw materials priced at £2.00 per kg, you start by calculating the total quantity of raw materials available for sale at that price.

If the raw materials are priced at £2.00 per kg, the total inventory value can be derived by multiplying the price per kg by the total quantity of raw materials that remain unsold at the end of the accounting period. It is crucial to ensure any adjustments have been factored in, such as spoilage or theft, that would decrease the total weight of materials available.

In this case, if the calculation resulted in a closing inventory value of £117,500, this suggests that the quantity of raw materials was successfully accounted for within the parameters of the pricing structure. The validity of this value hinges on accurately reflecting both the unit cost and the adjusted quantity of raw materials that are still held in inventory without errors in previous calculations.

Thus, arriving at £117,500 confirms that all necessary adjustments have been accounted for, leading to this final inventory valuation being accurate. In contrast, the other values likely do not align with the calculated data following these adjustments.