Toy Company Manufactures Toy Koalas

question 29

Multiple Choice

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.

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Definitions:

Integrity

The quality of being honest and having strong moral principles; moral uprightness.

Health History

A record of an individual’s health events and medical conditions over time, crucial for effective health assessment and management.

Fairness

The quality of making judgments that are free from discrimination or dishonesty, ensuring equitable treatment for all.

Critical Thinking

The mental activity that involves thoughtfully and adeptly forming concepts, using, examining, combining, and assessing data to come to a decision or judgement.