A Company own 90% of the outstanding shares of B Company and 80% of the outstanding shares of C Company. The companies sell goods to each other. For the current year, A sold goods to C for P250,000 at a 40% mark-up. C sold 70% of the goods to B for P250,000. B in turn sold 65% of the goods to outside parties for P300,000.

1 . Compute for the consolidated cost of sales.

a)274,120

b)50,120

c)59,528

d)283,528

2 . Compute the consolidated gross profit.

a)149,880

b)240,472

c)249,880

d)140,472