Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bo, In response to your email I have the following figures for you: Total purchases of soles this quarter from BFM B$320,000 Amount of soles
Bo, In response to your email I have the following figures for you: Total purchases of soles this quarter from BFM B$320,000 Amount of soles purchased remaining in our inventory at 30 September 20X8 is 30% We have been invoiced based on a mark-up of 20% Let me know if you require any further information. Regards Cole Cole Reynolds Senior production manager Jordan's Footwear You are compiling the consolidated profit or loss for the quarter ended 30 September 20X8, which is the first quarter where BFM's results will be reported to the management team. You are aware that purchasing goods from another group company creates the need for consolidation adjustments. You therefore emailed the product department and asked them to send you the relevant information. You have now received a reply from Cole Reynolds the senior production manager, with the title Purchases from BFM. You will find the email in your Resource Library. What is the adjustment to consolidated cost of sales as a result of the inter-company trading in the quarter ending 30 September 20X8? Solution A.Increase B$16,000. B.Increase B$19,200. C.Decrease B$304,000. D.Decrease B$300,80
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started