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What is the consolidated cost of goods sold?

What is the consolidated cost of goods sold?

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 19E
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What is the consolidated cost of goods sold?

ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statementsre as follows: ABC Sales Cost of goods sold Operating Expenses Dividend Income Net Income 800,000 (535,000) (100,000) 35,000 EFG 600,000 (400,000) (100,000) 200,000 100,000 Retained Earnings, beg Net Income Dividend Paid Retained Earnings, end 1,300,000 200,000 (100,000) 1,400,000 850,000 100,000 (50,000) 900,000 Cash and Receivables Inventory 300,000 700,000 400,000 298,000 902,000 1,000,000 (300,000) 2,300,000 Investment in EFG Fixed Assets Accumulated Depreciation Totals 600,000 (200,000) 1,400,000 Labilities Ordinary Share Accumulated Profit Totals 600,000 300,000 1,400,000 2,300,000 400,000 100,000 900,000 1,400,000 EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year-end, 20% is left. Compute for Consolidated Cost of Goods sold.
Transcribed Image Text:ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statementsre as follows: ABC Sales Cost of goods sold Operating Expenses Dividend Income Net Income 800,000 (535,000) (100,000) 35,000 EFG 600,000 (400,000) (100,000) 200,000 100,000 Retained Earnings, beg Net Income Dividend Paid Retained Earnings, end 1,300,000 200,000 (100,000) 1,400,000 850,000 100,000 (50,000) 900,000 Cash and Receivables Inventory 300,000 700,000 400,000 298,000 902,000 1,000,000 (300,000) 2,300,000 Investment in EFG Fixed Assets Accumulated Depreciation Totals 600,000 (200,000) 1,400,000 Labilities Ordinary Share Accumulated Profit Totals 600,000 300,000 1,400,000 2,300,000 400,000 100,000 900,000 1,400,000 EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year-end, 20% is left. Compute for Consolidated Cost of Goods sold.
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