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Can you explain how do we get COGS and Inventory? Exe Ltd sold supplies to Whi Ltd with a total sales value of $450,000. These

Can you explain how do we get COGS and Inventory?

Exe Ltd sold supplies to Whi Ltd with a total sales value of $450,000. These sales were completed on terms of cost plus 20%. Whi Ltd had $65,000 of these supplies in inventory on hand as of 30 June 20X2.

Date Account Debit $ Credit $
30/6/X2 Sales 450,000
COGS 439,167
Inventory 10,833
(Elimination of intra-group sales revenue and COGS and elimination of URP in closing inventory)
DTA 3,250
Income tax expense 3,250
(Recognition of the related income tax from consolidation adjustment to the carrying amount of inventory)

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