13. Given below is an extract from the income statements of Krag Co and its subsidiary...

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13. Given below is an extract from the income statements of Krag Co and its subsidiary Lag Co Krag Co Lag Co $ 000 $ 000 Revenue Cost of sales Gross profit [ 120,000 (70,000) 50,000 During the year ended 31 December 20X9 Krag Co sold goods which originally cost $10 000 000 to Lag Co for $15 000 000 Lag Co still had one quarter of these goods in inventory at 31 December 20X9. Lag Co still owed Krag Co $2 000 000 in respect of these goods. What is the figure for group cost of sales for the year? A [ ] $94 250 B [ ] $93 000 [ ] $93 750 ] $96 250 [ 88,000 (40,000) 48,000 13. Given below is an extract from the income statements of Krag Co and its subsidiary Lag Co Krag Co Lag Co $ 000 $ 000 Revenue Cost of sales Gross profit [ 120,000 (70,000) 50,000 During the year ended 31 December 20X9 Krag Co sold goods which originally cost $10 000 000 to Lag Co for $15 000 000 Lag Co still had one quarter of these goods in inventory at 31 December 20X9. Lag Co still owed Krag Co $2 000 000 in respect of these goods. What is the figure for group cost of sales for the year? A [ ] $94 250 B [ ] $93 000 [ ] $93 750 ] $96 250 [ 88,000 (40,000) 48,000

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SOLUTION To calculate the figure for group cost of sales for the year we need to add the cost of goo... View the full answer