Toy Company manufactures toy koalas.Transactions for the year 2012 were as follows:
(i)16 000 koalas were manufactured at a cost of $30 each.
(ii)12 000 koalas were sold for $50 each.
(iii)Cash was collected on 7000 of the items sold.
What was the reported profit for the year 2012 if revenue was recognised at the point of sale?
A) $140 000
B) $240 000
C) $320 000
D) $350 000.

Question

Toy Company manufactures toy koalas.Transactions for the year 2012 were as follows: 
(i)16 000 koalas were manufactured at a cost of $30 each.
(ii)12 000 koalas were sold for $50 each.
(iii)Cash was collected on 7000 of the items sold.
What was the reported profit for the year 2012 if revenue was recognised at the point of sale?
A) $140 000
B) $240 000
C) $320 000
D) $350 000.

Quizplus · Accepted Answer

The Answer of Toy Company manufactures toy koalas.Transactions for the year 2012 were as follows: 
(i)16 000 koalas were manufactured at a cost of $30 each.
(ii)12 000 koalas were sold for $50 each.
(iii)Cash was collected on 7000 of the items sold.
What was the reported profit for the year 2012 if revenue was recognised at the point of sale?
A) $140 000
B) $240 000
C) $320 000
D) $350 000.

Toy Company Manufactures Toy Koalas