The following extracts relate to Prime and its wholly owned subsidiary 

	Prime	Secondary
Statement of Financial Performance
Revenue	1,200,000	900,000
Cost of sales	800,000	600,000
Statement of Financial Position
Inventory	170,000	50,000

During the year the following transactions took place:

Prime's sales to Secondary: 100,000; 40% of these sales are still in inventory at balance date

Secondary's sales to Prime: 80,000; 20% of all these sales are still in inventory at balance date

Both Prime and Secondary make 10% profit on all sales (i.e., their profit = 10% of the given sales figures)

Profit in opening inventory of sales from Prime to Secondary: 1,000

Profit in opening inventory of sales from Secondary to Prime: 2,000

What is the consolidated cost of sales figure ?

Answer rating: 100% (QA)

To determine the consolidated cost of sales figure we need to first calculate the ... View the full answer