Question
During 2021, Company A sold merchandise to its wholly-owned subsidiary, Company B. At the end of 2021, the merchandise remaining with Company B contained $24,000
During 2021, Company A sold merchandise to its wholly-owned subsidiary, Company B. At the end of 2021, the merchandise remaining with Company B contained $24,000 gross profit. In 2022, Company A sold additional merchandise to Company B for $1,000,000. This merchandise had cost Company A $800,000. At year-end, this merchandise remaining with Company B contained $20,000 gross profit. For 2022, cost of goods sold was $5,400,000 for Company A and $1,200,000 for company B. What was consolidated cost of goods sold for 2022?
A. $5,620,000
B. $6,604,000
C. $5,596,000
D. $6,600,000
Thank you!
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