Top Company holds 90 percent of Bottom Company’s common stock. In the current year, Top reports sales of $906,000 and cost of goods sold of $679,500. For this same period, Bottom has sales of $319,000 and cost of goods sold of $201,300. During the current year, Bottom sold merchandise to Top for $138,000. The parent still possesses 40 percent of this inventory at the current year-end. Bottom had established the transfer price based on its normal gross profit rate. What are the consolidated sales and cost of goods sold?

Answer rating: 100% (QA)

Intra company sales and purchases of 230000 must be eliminated Intra company g... View the full answer