Question: THE DATA IN THIS PROBLEM IS USED FOR ALL QUESTIONS IN THIS ASSIGNMENT. Round all answers to the nearest whole dollar if needed. Please Corporation

THE DATA IN THIS PROBLEM IS USED FOR ALL QUESTIONS IN THIS ASSIGNMENT. Round all answers to the nearest whole dollar if needed.

Please Corporation owns 85 percent of Sorry Company's stock which was purchased at book value.During 20X5 Please sold some of its inventory to Sorry.Also during 20X5, Sorry sold some of its inventory to Please.Please Corporation prices its goods for sale using a 35% markup on cost andSorry Company prices its goods for sale using a 60% markup on cost.

The following information applies to Please and Sorry for 20X5:

Sales

Please Corporation's Total Sales (includes $540,000 sales to Sorry)$1,215,000

Sorry Company's Total Sales (includes $320,000 sales to Please)$986,000

Inventory

Please Corporation's inventory on hand on 12/31/X5:$400,000

(includes $153,000 purchased from Sorry)

Sorry Company's inventory on hand on 12/31/X5:$200,000

(includes $135,000 purchased from Please)

Neither Company had inventory on hand on 1/1/X5.No intercompany sales of inventory occurred during 20X6.

As a result of these intercompany inventory sales, the following entries were made on the 20X5 consolidation workpaper.

X5 Workpaper Entries:

Please Corporation's sales to Sorry Company

Sales540,000

CGS505,000

Inventory35,000

Sorry Company's sales to Please Corporation

Sales320,000(S's intercompany sales)

CGS262,400

Inventory57,600

What amount should be reported for Sales on the 20X5 consolidated income statement?

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