Brandy Corporation owns 60 percent of Downer's voting shares. During 20X3, Brandy produced 50,000 computer desks at
Fantastic news! We've Found the answer you've been seeking!
Question:
Brandy Corporation owns 60 percent of Downer's voting shares. During 20X3, Brandy produced 50,000 computer desks at a cost of $82 each and sold 20,000 of them to Draw for $94 each. Downer sold 14,000 of the desks to unaffiliated companies for $130 each prior to December 31, 20X3, and sold the remainder in early 20X4 for $140 each. Both companies use perpetual inventory systems. Tax rate is 30 percent.
Required
- What amounts of cost of goods sold did Brandy and Downer record in 20X3?
- What amount of cost of goods sold must be reported in the consolidated income statement for 20X3?
- Prepare the necessary journal entry to eliminate the intra-gorup sales and cost of goods sold.
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date: