2020 Intra-Entity Gross Profit Remaining in Ending Inventory 34200 =(640000-450000)*18% 2021 Intra-Entity Gross Profit Remaining in Ending Inventory 27000 =(1000000-820000)*15% Parent's cost of goods sold 5800000 Add: Subsidiary's Cost of goods sold 1300000 Less: Intra entity transfer -1000000 Less: 2020 Intra-Entity Gross Profit Remaining in Ending Inventory -34200 Add: 2021 Intra-Entity Gross Profit Remaining in Ending Inventory 27000 Consolidated cost of goods sold for 2021 6092800 $6,092,800 is correct answer