Question
Company A owns 100% of the common stock of Company B. Total Sales and COGS for both companies are as follows: Company A Company B
Company A owns 100% of the common stock of Company B. Total Sales and COGS for both companies are as follows:
| Company A | Company B | |
|---|---|---|
| Sales | $800,000 | $50,000 |
| COGS | $600,000 | $36,000 |
| GP | $200,000 | $14,000 |
During the year Company A sold merchandise costing $60,000 to Company B for $80,000. At the end of the year Company B still possessed 30% of this inventory.
1. Compute consolidated Sales (Use the table below to assist your computation).
2. Compute consolidated COGS (Use the table below to assist your computation).
| Company A | Company B | Entry TI | Entry G | Consolidated | |
|---|---|---|---|---|---|
| Sales | (800,000) | (50,000) | |||
| COGS | 600,000 | 36,000 | |||
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
M Glichkeiten Und Grenzen Der F Rderung Verantwortlichen Handelns Von Wirtschaftspr Fern In Moralisch Relevanten Situationen Eine Theoretische Und And Accounting Studies
Authors: Catharina Schmiele
2012 Edition
383493335X, 978-3834933355
