Question: Why is there a need for a consolidation entry when an intercompany inventory transfer is made at cost?

Why is there a need for a consolidation entry when an intercompany inventory transfer is made at cost?

Step by Step Solution

★★★★★

3.53 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

An inventory transfer at cost results in an overst... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1217-B-A-G-F-A(12214).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

Since there is a regular income tax, why is there a need for an AMT?

Q:

Why is there a need for aggregate planning?

Q:

Why is there a need for aggregate operations planning?

Q:

Please mention the question number. These are separate questions LO 6 - 1 Q 6 - 1 LO 6 - 2 Q 6 - 2 P 6 - 1 7 LO 6 - 1 Q 6 - 1 Why must inventory transfers to related companies be eliminated in...

Q:

Why is there a need for an eliminating entry when an intercompany inventory transfer is made at cost?

Q:

Why is there need for an eliminating entry when an intercompany inventory transfer is made at cost?

Q:

In preparing the consolidation worksheet for Pencil Corporation and its 60 percent-owned subsidiary, Stylus Company, the following consolidation entries were proposed by Pencil's bookkeeper: Debit...

Q:

6-20 (Static) Correction of Consolidation Entries LO 6-4 In preparing the consolidation worksheet for Pencil Corporation and its 60 percent-owned subsidiary, Stylus Company, the following...

Q:

1. Statement 1: Inventory sales from a parent to one of its subsidiaries are referred to as downstream sales. Statement 2: Because all intercompany transactions are eliminated in consolidation, the...

Q:

P6-20 Correction of Consolidation Entries LO 6-4 In preparing the consolidation worksheet for Pencil Corporation and its 60 percent-owned subsidiary, Stylus Company, the following consolidation...

Q:

Did President Ronald Reagan Legally Sack The Striking Federal Air-Traffic Workers?

Q:

When will a misunderstanding as to the terms of a contract cause that contract to be void?

Q:

12.68 Exercise 10.85 presented a table in which men were classified according to whether or not they had a pierced ear and a tattoo. Of the 424 men with no pierced ear, 43 had a tattoo. Of the 141...

Q:

Suppose an operation is known to exhibit a learning curve rate of 85%. Production was interrupted for 3 months after 100 units had been produced. If the cost of the very first unit is $50, find (a)...

Q:

Spur Corporation reported the following balance sheet amounts on December 31, 20X1: Required Blanket acquired Spur Corporations assets and liabilities for $670,000 cash on December 31, 20X1. Give the...

Q:

Spur Corporation reported the following balance sheet amounts on December 31, 20X1: Required Blanket acquired Spur Corporations assets and liabilities for $670,000 cash on December 31, 20X1. Give the...

Q:

Spur Corporation reported the following balance sheet amounts on December 31, 20X1: Required Blanket acquired Spur Corporations assets and liabilities for $670,000 cash on December 31, 20X1. Give the...

Q:

Using the following data, calculate the planned and actual monthly budgets through the end of June. Assume the project is planned for a 12 -month duration and $300,000 budget. All costs are in $000....

Q:

True or False The following is a valid probability distribution. 11 12 13 14 P(z) 0.29 0.47 -0.14 0.48 Select one: O True O False

Q:

Consider the following information on a portfolio of three stocks: State of Economy Probability of State of Economy Stock A Rate of Return Stock B Rate of Return Stock C Rate of Return Boom .14 .09...