A-LevelAccountingPreparation of financial statements9706/12 · May/June 2010 · Q131 Mark
A company calculates factory profit at a mark-up of 20% on the cost of production. The following information is available. inventory (stock) of finished goods at cost at 31 December 2007 $40 000 cost of goods produced for the year to 31 December 2008 $240 000 closing inventory (stock) of finished goods at cost plus factory profit at 31 December 2008 $54 000 How much will be shown as factory profit in the accounts for the year ended 31 December 2008?
A$39 000
B$40 000
C$47 000
D$48 000
✓ Correct answer
C: $47 000
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