Pine Company holds 60% of Spruce Company stock. Pine has sold inventory to Spruce Company as follows: year           Cost to Pine         Sales price to spruce Percen of Sold Held at Year Pine Spruce Year end 2017               $193,000             $347,000                          30% 2018               $206,000             $310,000                          20%  2019               $360,000            $450,000                        25% 2020               $150,000             $250,000                          30% The following balances were included in the individual financial statements of each company for the year ended 12/31/2020:                                                    Pine Co.        Spruce                                   Sales $ 5,100,000     3,900,000            Cost of goods sold $ 3,570,000          2,400,000    Merchandise inventory $ 580,000    390,000  consilidated inventory is 940,000 c. What will be reported as consolidated cost of goods sold for 2020?

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Pine Company holds 60% of Spruce Company stock.

Pine has sold inventory to Spruce Company as follows:

year           Cost to Pine         Sales price to spruce Percen of Sold Held at Year Pine Spruce Year end

2017               $193,000             $347,000                          30%

2018               $206,000             $310,000                          20%

 2019               $360,000            $450,000                        25%

2020               $150,000             $250,000                          30%

The following balances were included in the individual financial statements of each company for the year ended 12/31/2020:

                                                   Pine Co.        Spruce

                                  Sales $ 5,100,000     3,900,000

           Cost of goods sold $ 3,570,000          2,400,000

   Merchandise inventory $ 580,000    390,000 

consilidated inventory is 940,000

c. What will be reported as consolidated cost of goods sold for 2020?

 

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