Working backward from data that has eliminated intercompany transactions. (Adapted from a problem by S. A. Zeff.) Alpha owns 100% of Omega and consolidates Omega in an entity called Alpha/Omega. Beginning in 2008, Alpha sold merchandise to Omega at a price 50% larger than Alpha€™s costs Omega sold some, but not all, of these goods to customers at a further markup. Excerpts from the single-company statements of Alpha and Omega and from the consolidated financial statements of Alpha/Omega appear next.

a. What was the total sales price at which Alpha sold goods to Omega during 2008?
b. What was Omega€™s cost of the goods it had purchased from Alpha but has not vet sold by the end of 2008? What was Alpha€™s cost of those goods? Which of those two numbers appears in the total Merchandise Inventory on the consolidated balancesheet?

Single-Company Statements Alpha Consolidated Financial ega Statements Sales Revenue Cost of Goods Sold Merchandise Inventory $450,000 300,000 $250,000 $620,000 430,000 210,000 50,000 100,000 60,000