Pie Bakery owns $60$ percent of Slice Products Company's stock.

During $20$X$8,$ Slice produced $100,000$ bags of flour, which it sold to

Pie Bakery for $$900,000.$ On December $31,208,$ Pie had $20,000$

bags of flour purchased from Slice Products on hand. Slice prices its

sales at cost plus $50$ percent of cost for profit. Pie, which purchased

all its flour from Slice in $20$X$8,$ had no inventory on hand on January $1,$

$208.$

Pie Bakery reported income from its baking operations of $$400,000,$

and Slice Products reported net income of $$150,000$ for $208.$

Required:

a$.$ Compute the amount reported as cost of goods sold in the $20$X$8$

consolidated income statement.

Note: Do not round intermediate calculations.

Consolidated cost of goods sold

c$.$ Compute the amounts reported as consolidated net income and

income assigned to the controlling interest in the $20$X$8$

consolidated income statement.

Note: Do not round intermediate calculations.

b$.$ Prepare the worksheet consolidation entry or entries required to

remove the effects of the intercompany sale in preparing

consolidated statements at the end of $20$X$8.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No

journal entry required" in the first account field. Do not round

intermediate calculations.

Consolidation

Worksheet Entries

A

Record the consolidation entry for the intercorporate sale of inver

Note: Enter debits before credits.