Sales refer to a transaction between two parties in which one party sells a product or a service and another party purchases those goods and services in exchange for a consideration, usually monetary in nature. The amount reported in the consolidated income statement as sales.

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 6, Problem 6.28P

(a)

To determine

Introduction: Sales refer to a transaction between two parties in which one party sells a product or a service and another party purchases those goods and services in exchange for a consideration, usually monetary in nature.

The amount reported in the consolidated income statement as sales.

(a)

Expert Solution

Answer to Problem 6.28P

Sales to be recorded in the consolidated income statement is $790,000

Explanation of Solution

Calculation of sales

Particulars	Amount (in $)	Amount (in $)
Reported sales of B		660,000
Reported sales of H		510,000
		1,170,000
Intercompany sales by B	140,000
Intercompany sales by H	240,000	(380,000)
Sales reported on consolidated income statement		790,000

(b)

To determine

Introduction: The cost of goods sold refers to the cost of acquisition or manufacturing of goods that a company sells during a particular period. The cost of goods sold includes the cost of materials and labor used in the manufacturing and other associated costs.

The amount reported in the consolidated income statement as cost of goods sold

(b)

Expert Solution

Answer to Problem 6.28P

Cost of goods sold to be recorded in the consolidated income statement is $536,429

Explanation of Solution

Calculation of cost of goods sold

Particulars	B (in $)	H (in $)
Seles reported	660,000	510,000
Ratio of cost to sales price	1.4	1.2
Cost of goods sold	471,429	425,000
Amount to be eliminated	(128,000)	(232,000)
Cost of goods sold adjusted	(343,429)	(193,000)
Cost of goods sold		536,429

(c)

To determine

Introduction: The consolidated income is the difference between the sum of the total operating income of the parent company and the net income of the subsidiary and the unrealized inventory profits of the two. The income assigned to controlling interest is the difference between income assigned to non-controlling interest and the consolidated net income.

The amount reported as consolidated net income and income assigned to the controlling interest.

(c)

Expert Solution

Answer to Problem 6.28P

The consolidated net income is $70,000

The income assigned to controlling interest is $67,600

Explanation of Solution

Consolidated net income:

Particulars	Amount (in $)	Amount (in $)
Operating income of B	70,000
Net income of H	20,000
Total income		90,000
Less: unrealized inventory profits of B		(12,000)
unrealized inventory profits of H		(8,000)
Consolidated net income		70,000

Income assigned to controlling interest:

Particulars	Amount (in $)
Consolidated net income	70,000
Less: income assigned to non- controlling interest (20,000−8,000)×20%	(2,400)
Income assigned to controlling interest	67,600

(d)

To determine

Introduction: Inventory refers to the goods that a business holds with the ultimate goal of resale. It includes only the finished goods or unfinished goods to be ultimately used in the production process. It is classified as a current asset in the balance sheet of the company.

The inventory balance reported in the consolidated balance sheet for 20X8

(d)

Expert Solution

Answer to Problem 6.28P

The amount of inventory to be reported in the 20X8 balance sheet is $70,000

Explanation of Solution

Inventory:

Particulars	Amount (in $)	Amount (in $)
Inventory reported by B	48,000
Unrealized profits	(8,000)	40,000

Inventory reported by H	42,000
Unrealized profit	(12,000)	30,000
Inventory as on December, 20X5		70,000

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Students have asked these similar questions

K Company owns 100% of E Company. During the year, Kianapurchased inventory from Elyssa at a mark-up of 20% based on cost.How should the group compute for consolidated cost of sales?a. Cost of Sales of K + Cost of Sales of E– intercompany sales + Realized profit in beginning inventory – Unrealized profit in ending inventory.b. Cost of Sales of K + Cost of Sales of E – intercompany sales – Realized profit in beginning inventory + Unrealized profit in ending inventory.c. Cost of Sales of Kiana + Cost of Sales of Elyssa – Intercompany sales d. Cost of Sales of K + Cost of Sales of E

Preparing a consolidated income statement For the year ended December 31, 20Y2, the operating results of Paley Corporation and its wholly owned subsidiary, Sims Enterprises, are as follows: Sales Cost of goods sold Gross profit Operating expenses Operating income Interest revenue Interest expense Net income Sales Paley Sims Corporation Enterprises 3,200,000 (1,900,000) 1,300,000 (750,000) 550,000 20,000 During 20Y2, Sims Enterprises sold and received payment of $80,000 for merchandise that was purchased by Paley Corporation. The merchandise sold to Paley cost Sims Enterprises $45,000. Paley Corporation sold the merchandise to another (nonaffiliated) company for $110,000. Cost of goods sold Gross profit a. Prepare a consolidated income statement for Paley Corporation and Subsidiary. Hint: Eliminate the effect of the intercompany sale. 570,000 Net income 900,000 (550,000) 350,000 (125,000) 225,000 Operating expenses Operating income Other revenue and expense: Interest revenue Interest…

During 20x9, PP Corporation recorded sales of inventory costing P500,0000 to SS Company, its wholly owned subsidiary, on the same terms as sales made to third parties. At December 31,20x9, SS held one-fifth of this goods inventory. The following information pertains to PP and SS’s sales for 20x9: (see image below) In its 20x9 consolidated income statement, what amount should PP report as cost of sales?

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 6, Problem 6.28P

(a)

To determine

Introduction: Sales refer to a transaction between two parties in which one party sells a product or a service and another party purchases those goods and services in exchange for a consideration, usually monetary in nature.

The amount reported in the consolidated income statement as sales.

(a)

Expert Solution

Answer to Problem 6.28P

Sales to be recorded in the consolidated income statement is $790,000

Explanation of Solution

Calculation of sales

Particulars	Amount (in $)	Amount (in $)
Reported sales of B		660,000
Reported sales of H		510,000
		1,170,000
Intercompany sales by B	140,000
Intercompany sales by H	240,000	(380,000)
Sales reported on consolidated income statement		790,000

(b)

To determine

Introduction: The cost of goods sold refers to the cost of acquisition or manufacturing of goods that a company sells during a particular period. The cost of goods sold includes the cost of materials and labor used in the manufacturing and other associated costs.

The amount reported in the consolidated income statement as cost of goods sold

(b)

Expert Solution

Answer to Problem 6.28P

Cost of goods sold to be recorded in the consolidated income statement is $536,429

Explanation of Solution

Calculation of cost of goods sold

Particulars	B (in $)	H (in $)
Seles reported	660,000	510,000
Ratio of cost to sales price	1.4	1.2
Cost of goods sold	471,429	425,000
Amount to be eliminated	(128,000)	(232,000)
Cost of goods sold adjusted	(343,429)	(193,000)
Cost of goods sold		536,429

(c)

To determine

Introduction: The consolidated income is the difference between the sum of the total operating income of the parent company and the net income of the subsidiary and the unrealized inventory profits of the two. The income assigned to controlling interest is the difference between income assigned to non-controlling interest and the consolidated net income.

The amount reported as consolidated net income and income assigned to the controlling interest.

(c)

Expert Solution

Answer to Problem 6.28P

The consolidated net income is $70,000

The income assigned to controlling interest is $67,600

Explanation of Solution

Consolidated net income:

Particulars	Amount (in $)	Amount (in $)
Operating income of B	70,000
Net income of H	20,000
Total income		90,000
Less: unrealized inventory profits of B		(12,000)
unrealized inventory profits of H		(8,000)
Consolidated net income		70,000

Income assigned to controlling interest:

Particulars	Amount (in $)
Consolidated net income	70,000
Less: income assigned to non- controlling interest (20,000−8,000)×20%	(2,400)
Income assigned to controlling interest	67,600

(d)

To determine

Introduction: Inventory refers to the goods that a business holds with the ultimate goal of resale. It includes only the finished goods or unfinished goods to be ultimately used in the production process. It is classified as a current asset in the balance sheet of the company.

The inventory balance reported in the consolidated balance sheet for 20X8

(d)

Expert Solution

Answer to Problem 6.28P

The amount of inventory to be reported in the 20X8 balance sheet is $70,000

Explanation of Solution

Inventory:

Particulars	Amount (in $)	Amount (in $)
Inventory reported by B	48,000
Unrealized profits	(8,000)	40,000

Inventory reported by H	42,000
Unrealized profit	(12,000)	30,000
Inventory as on December, 20X5		70,000

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 6, Problem 6.28P

(a)

To determine

Introduction: Sales refer to a transaction between two parties in which one party sells a product or a service and another party purchases those goods and services in exchange for a consideration, usually monetary in nature.

The amount reported in the consolidated income statement as sales.

(a)

Expert Solution

Answer to Problem 6.28P

Sales to be recorded in the consolidated income statement is $790,000

Explanation of Solution

Calculation of sales

Particulars	Amount (in $)	Amount (in $)
Reported sales of B		660,000
Reported sales of H		510,000
		1,170,000
Intercompany sales by B	140,000
Intercompany sales by H	240,000	(380,000)
Sales reported on consolidated income statement		790,000

(b)

To determine

Introduction: The cost of goods sold refers to the cost of acquisition or manufacturing of goods that a company sells during a particular period. The cost of goods sold includes the cost of materials and labor used in the manufacturing and other associated costs.

The amount reported in the consolidated income statement as cost of goods sold

(b)

Expert Solution

Answer to Problem 6.28P

Cost of goods sold to be recorded in the consolidated income statement is $536,429

Explanation of Solution

Calculation of cost of goods sold

Particulars	B (in $)	H (in $)
Seles reported	660,000	510,000
Ratio of cost to sales price	1.4	1.2
Cost of goods sold	471,429	425,000
Amount to be eliminated	(128,000)	(232,000)
Cost of goods sold adjusted	(343,429)	(193,000)
Cost of goods sold		536,429

(c)

To determine

Introduction: The consolidated income is the difference between the sum of the total operating income of the parent company and the net income of the subsidiary and the unrealized inventory profits of the two. The income assigned to controlling interest is the difference between income assigned to non-controlling interest and the consolidated net income.

The amount reported as consolidated net income and income assigned to the controlling interest.

(c)

Expert Solution

Answer to Problem 6.28P

The consolidated net income is $70,000

The income assigned to controlling interest is $67,600

Explanation of Solution

Consolidated net income:

Particulars	Amount (in $)	Amount (in $)
Operating income of B	70,000
Net income of H	20,000
Total income		90,000
Less: unrealized inventory profits of B		(12,000)
unrealized inventory profits of H		(8,000)
Consolidated net income		70,000

Income assigned to controlling interest:

Particulars	Amount (in $)
Consolidated net income	70,000
Less: income assigned to non- controlling interest (20,000−8,000)×20%	(2,400)
Income assigned to controlling interest	67,600

(d)

To determine

Introduction: Inventory refers to the goods that a business holds with the ultimate goal of resale. It includes only the finished goods or unfinished goods to be ultimately used in the production process. It is classified as a current asset in the balance sheet of the company.

The inventory balance reported in the consolidated balance sheet for 20X8

(d)

Expert Solution

Answer to Problem 6.28P

The amount of inventory to be reported in the 20X8 balance sheet is $70,000

Explanation of Solution

Inventory:

Particulars	Amount (in $)	Amount (in $)
Inventory reported by B	48,000
Unrealized profits	(8,000)	40,000

Inventory reported by H	42,000
Unrealized profit	(12,000)	30,000
Inventory as on December, 20X5		70,000

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 6, Problem 6.28P

(a)

To determine

Introduction: Sales refer to a transaction between two parties in which one party sells a product or a service and another party purchases those goods and services in exchange for a consideration, usually monetary in nature.

The amount reported in the consolidated income statement as sales.

(a)

Expert Solution

Answer to Problem 6.28P

Sales to be recorded in the consolidated income statement is $790,000

Explanation of Solution

Calculation of sales

Particulars	Amount (in $)	Amount (in $)
Reported sales of B		660,000
Reported sales of H		510,000
		1,170,000
Intercompany sales by B	140,000
Intercompany sales by H	240,000	(380,000)
Sales reported on consolidated income statement		790,000

(b)

To determine

Introduction: The cost of goods sold refers to the cost of acquisition or manufacturing of goods that a company sells during a particular period. The cost of goods sold includes the cost of materials and labor used in the manufacturing and other associated costs.

The amount reported in the consolidated income statement as cost of goods sold

(b)

Expert Solution

Answer to Problem 6.28P

Cost of goods sold to be recorded in the consolidated income statement is $536,429

Explanation of Solution

Calculation of cost of goods sold

Particulars	B (in $)	H (in $)
Seles reported	660,000	510,000
Ratio of cost to sales price	1.4	1.2
Cost of goods sold	471,429	425,000
Amount to be eliminated	(128,000)	(232,000)
Cost of goods sold adjusted	(343,429)	(193,000)
Cost of goods sold		536,429

(c)

To determine

Introduction: The consolidated income is the difference between the sum of the total operating income of the parent company and the net income of the subsidiary and the unrealized inventory profits of the two. The income assigned to controlling interest is the difference between income assigned to non-controlling interest and the consolidated net income.

The amount reported as consolidated net income and income assigned to the controlling interest.

(c)

Expert Solution

Answer to Problem 6.28P

The consolidated net income is $70,000

The income assigned to controlling interest is $67,600

Explanation of Solution

Consolidated net income:

Particulars	Amount (in $)	Amount (in $)
Operating income of B	70,000
Net income of H	20,000
Total income		90,000
Less: unrealized inventory profits of B		(12,000)
unrealized inventory profits of H		(8,000)
Consolidated net income		70,000

Income assigned to controlling interest:

Particulars	Amount (in $)
Consolidated net income	70,000
Less: income assigned to non- controlling interest (20,000−8,000)×20%	(2,400)
Income assigned to controlling interest	67,600

(d)

To determine

Introduction: Inventory refers to the goods that a business holds with the ultimate goal of resale. It includes only the finished goods or unfinished goods to be ultimately used in the production process. It is classified as a current asset in the balance sheet of the company.

The inventory balance reported in the consolidated balance sheet for 20X8

(d)

Expert Solution

Answer to Problem 6.28P

The amount of inventory to be reported in the 20X8 balance sheet is $70,000

Explanation of Solution

Inventory:

Particulars	Amount (in $)	Amount (in $)
Inventory reported by B	48,000
Unrealized profits	(8,000)	40,000

Inventory reported by H	42,000
Unrealized profit	(12,000)	30,000
Inventory as on December, 20X5		70,000

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Answer 5

Chapter 6, Problem 6.28P

(a)

To determine

Introduction: Sales refer to a transaction between two parties in which one party sells a product or a service and another party purchases those goods and services in exchange for a consideration, usually monetary in nature.

The amount reported in the consolidated income statement as sales.

(a)

Expert Solution

Answer to Problem 6.28P

Sales to be recorded in the consolidated income statement is $790,000

Explanation of Solution

Calculation of sales

Particulars	Amount (in $)	Amount (in $)
Reported sales of B		660,000
Reported sales of H		510,000
		1,170,000
Intercompany sales by B	140,000
Intercompany sales by H	240,000	(380,000)
Sales reported on consolidated income statement		790,000

(b)

To determine

Introduction: The cost of goods sold refers to the cost of acquisition or manufacturing of goods that a company sells during a particular period. The cost of goods sold includes the cost of materials and labor used in the manufacturing and other associated costs.

The amount reported in the consolidated income statement as cost of goods sold

(b)

Expert Solution

Answer to Problem 6.28P

Cost of goods sold to be recorded in the consolidated income statement is $536,429

Explanation of Solution

Calculation of cost of goods sold

Particulars	B (in $)	H (in $)
Seles reported	660,000	510,000
Ratio of cost to sales price	1.4	1.2
Cost of goods sold	471,429	425,000
Amount to be eliminated	(128,000)	(232,000)
Cost of goods sold adjusted	(343,429)	(193,000)
Cost of goods sold		536,429

(c)

To determine

Introduction: The consolidated income is the difference between the sum of the total operating income of the parent company and the net income of the subsidiary and the unrealized inventory profits of the two. The income assigned to controlling interest is the difference between income assigned to non-controlling interest and the consolidated net income.

The amount reported as consolidated net income and income assigned to the controlling interest.

(c)

Expert Solution

Answer to Problem 6.28P

The consolidated net income is $70,000

The income assigned to controlling interest is $67,600

Explanation of Solution

Consolidated net income:

Particulars	Amount (in $)	Amount (in $)
Operating income of B	70,000
Net income of H	20,000
Total income		90,000
Less: unrealized inventory profits of B		(12,000)
unrealized inventory profits of H		(8,000)
Consolidated net income		70,000

Income assigned to controlling interest:

Particulars	Amount (in $)
Consolidated net income	70,000
Less: income assigned to non- controlling interest (20,000−8,000)×20%	(2,400)
Income assigned to controlling interest	67,600

(d)

To determine

Introduction: Inventory refers to the goods that a business holds with the ultimate goal of resale. It includes only the finished goods or unfinished goods to be ultimately used in the production process. It is classified as a current asset in the balance sheet of the company.

The inventory balance reported in the consolidated balance sheet for 20X8

(d)

Expert Solution

Answer to Problem 6.28P

The amount of inventory to be reported in the 20X8 balance sheet is $70,000

Explanation of Solution

Inventory:

Particulars	Amount (in $)	Amount (in $)
Inventory reported by B	48,000
Unrealized profits	(8,000)	40,000

Inventory reported by H	42,000
Unrealized profit	(12,000)	30,000
Inventory as on December, 20X5		70,000

Answer 6

Chapter 6, Problem 6.28P

(a)

To determine

Introduction: Sales refer to a transaction between two parties in which one party sells a product or a service and another party purchases those goods and services in exchange for a consideration, usually monetary in nature.

The amount reported in the consolidated income statement as sales.

(a)

Expert Solution

Answer to Problem 6.28P

Sales to be recorded in the consolidated income statement is $790,000

Explanation of Solution

Calculation of sales

Particulars	Amount (in $)	Amount (in $)
Reported sales of B		660,000
Reported sales of H		510,000
		1,170,000
Intercompany sales by B	140,000
Intercompany sales by H	240,000	(380,000)
Sales reported on consolidated income statement		790,000

Answer 7

Chapter 6, Problem 6.28P

(a)

To determine

Introduction: Sales refer to a transaction between two parties in which one party sells a product or a service and another party purchases those goods and services in exchange for a consideration, usually monetary in nature.

The amount reported in the consolidated income statement as sales.

Answer 8

(a)

Expert Solution

Answer to Problem 6.28P

Sales to be recorded in the consolidated income statement is $790,000

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Calculation of sales

Particulars	Amount (in $)	Amount (in $)
Reported sales of B		660,000
Reported sales of H		510,000
		1,170,000
Intercompany sales by B	140,000
Intercompany sales by H	240,000	(380,000)
Sales reported on consolidated income statement		790,000

Answer 13

(b)

To determine

Introduction: The cost of goods sold refers to the cost of acquisition or manufacturing of goods that a company sells during a particular period. The cost of goods sold includes the cost of materials and labor used in the manufacturing and other associated costs.

The amount reported in the consolidated income statement as cost of goods sold

(b)

Expert Solution

Answer to Problem 6.28P

Cost of goods sold to be recorded in the consolidated income statement is $536,429

Explanation of Solution

Calculation of cost of goods sold

Particulars	B (in $)	H (in $)
Seles reported	660,000	510,000
Ratio of cost to sales price	1.4	1.2
Cost of goods sold	471,429	425,000
Amount to be eliminated	(128,000)	(232,000)
Cost of goods sold adjusted	(343,429)	(193,000)
Cost of goods sold		536,429

Answer 14

(b)

To determine

Introduction: The cost of goods sold refers to the cost of acquisition or manufacturing of goods that a company sells during a particular period. The cost of goods sold includes the cost of materials and labor used in the manufacturing and other associated costs.

The amount reported in the consolidated income statement as cost of goods sold

Answer 15

(b)

Expert Solution

Answer to Problem 6.28P

Cost of goods sold to be recorded in the consolidated income statement is $536,429

Answer 16

(b)

Expert Solution

Answer 17

(b)

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

Calculation of cost of goods sold

Particulars	B (in $)	H (in $)
Seles reported	660,000	510,000
Ratio of cost to sales price	1.4	1.2
Cost of goods sold	471,429	425,000
Amount to be eliminated	(128,000)	(232,000)
Cost of goods sold adjusted	(343,429)	(193,000)
Cost of goods sold		536,429

Answer 20

(c)

To determine

Introduction: The consolidated income is the difference between the sum of the total operating income of the parent company and the net income of the subsidiary and the unrealized inventory profits of the two. The income assigned to controlling interest is the difference between income assigned to non-controlling interest and the consolidated net income.

The amount reported as consolidated net income and income assigned to the controlling interest.

(c)

Expert Solution

Answer to Problem 6.28P

The consolidated net income is $70,000

The income assigned to controlling interest is $67,600

Explanation of Solution

Consolidated net income:

Particulars	Amount (in $)	Amount (in $)
Operating income of B	70,000
Net income of H	20,000
Total income		90,000
Less: unrealized inventory profits of B		(12,000)
unrealized inventory profits of H		(8,000)
Consolidated net income		70,000

Income assigned to controlling interest:

Particulars	Amount (in $)
Consolidated net income	70,000
Less: income assigned to non- controlling interest (20,000−8,000)×20%	(2,400)
Income assigned to controlling interest	67,600

Answer 21

(c)

To determine

Introduction: The consolidated income is the difference between the sum of the total operating income of the parent company and the net income of the subsidiary and the unrealized inventory profits of the two. The income assigned to controlling interest is the difference between income assigned to non-controlling interest and the consolidated net income.

The amount reported as consolidated net income and income assigned to the controlling interest.

Answer 22

(c)

Expert Solution

Answer to Problem 6.28P

The consolidated net income is $70,000

The income assigned to controlling interest is $67,600

Answer 23

(c)

Expert Solution

Answer 24

(c)

Expert Solution

Answer 25

Expert Solution

Answer 26

Explanation of Solution

Consolidated net income:

Particulars	Amount (in $)	Amount (in $)
Operating income of B	70,000
Net income of H	20,000
Total income		90,000
Less: unrealized inventory profits of B		(12,000)
unrealized inventory profits of H		(8,000)
Consolidated net income		70,000

Income assigned to controlling interest:

Particulars	Amount (in $)
Consolidated net income	70,000
Less: income assigned to non- controlling interest (20,000−8,000)×20%	(2,400)
Income assigned to controlling interest	67,600

Answer 27

(d)

To determine

Introduction: Inventory refers to the goods that a business holds with the ultimate goal of resale. It includes only the finished goods or unfinished goods to be ultimately used in the production process. It is classified as a current asset in the balance sheet of the company.

The inventory balance reported in the consolidated balance sheet for 20X8

(d)

Expert Solution

Answer to Problem 6.28P

The amount of inventory to be reported in the 20X8 balance sheet is $70,000

Explanation of Solution

Inventory:

Particulars	Amount (in $)	Amount (in $)
Inventory reported by B	48,000
Unrealized profits	(8,000)	40,000

Inventory reported by H	42,000
Unrealized profit	(12,000)	30,000
Inventory as on December, 20X5		70,000

Answer 28

(d)

To determine

Introduction: Inventory refers to the goods that a business holds with the ultimate goal of resale. It includes only the finished goods or unfinished goods to be ultimately used in the production process. It is classified as a current asset in the balance sheet of the company.

The inventory balance reported in the consolidated balance sheet for 20X8

Answer 29

(d)

Expert Solution

Answer to Problem 6.28P

The amount of inventory to be reported in the 20X8 balance sheet is $70,000

Answer 30

(d)

Expert Solution

Answer 31

(d)

Expert Solution

Answer 32

Expert Solution

Answer 33

Explanation of Solution

Inventory:

Particulars	Amount (in $)	Amount (in $)
Inventory reported by B	48,000
Unrealized profits	(8,000)	40,000

Inventory reported by H	42,000
Unrealized profit	(12,000)	30,000
Inventory as on December, 20X5		70,000