29. Lion Company purchased inventory from Dove Corporation for P120,000 on October 4, 2020, and resold 80% to outsider before end of the year, for P140,000. Dove manufactured the inventory sold to Lion for the following costs: Direct materials - P40,000; Direct labor - P20,000; Overhead – applied at 75% of direct labor costs. Lion owns 70% of Dove. Assume that there are no other transactions occur during 2020. How much is the consolidated sales? a. P260,000 b. P120,000 с. Р98,000 d. P140,000 30. How much is the consolidated cost of sales? a. P60,000 b. Р96,000 c. P45,000 d. P75,000 CHAPTER 4: CONSOLIDATION - INTERCOMPANY PROFIT Page | 167 31. The controlling interest in the consolidated gross profit is: a. P45,000 b. Р30,800 c. P69,500 d. P69,200 e. P71,200 32. The amount of inventory that will be shown in the consolidated statements is: a. P24,000 b. P16,800 с. Р39,000 d P1500

29. Lion Company purchased inventory from Dove Corporation for P120,000 on October 4, 2020, and resold 80% to outsider before end of the year, for P140,000. Dove manufactured the inventory sold to Lion for the following costs: Direct materials - P40,000; Direct labor - P20,000; Overhead – applied at 75% of direct labor costs. Lion owns 70% of Dove. Assume that there are no other transactions occur during 2020. How much is the consolidated sales? a. P260,000 b. P120,000 с. Р98,000 d. P140,000 30. How much is the consolidated cost of sales? a. P60,000 b. Р96,000 c. P45,000 d. P75,000 CHAPTER 4: CONSOLIDATION - INTERCOMPANY PROFIT Page | 167 31. The controlling interest in the consolidated gross profit is: a. P45,000 b. Р30,800 c. P69,500 d. P69,200 e. P71,200 32. The amount of inventory that will be shown in the consolidated statements is: a. P24,000 b. P16,800 с. Р39,000 d P1500

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 26P

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