Company P has owned 80 percent of Company S for a number of years. This year Company P bought inventory for $100,000 and sold it to Company S for $150,000. At the end of the year, Company S still holds inventory with a transfer price of $30,000. Company P reported sales for the year of $700,000 and Company S reported sales of $500,000.

Assume that each company separately reports cost of goods sold of $400,000 each. What is consolidated cost of goods sold?

Question 6 options:

$660,000

$800,000

$710,000

$700,000