Reference no: EM132769919

Question - A Company own 90% of the outstanding shares of B Company and 80% of the outstanding shares of C Company. The companies sell goods to each other. For the current year, A sold goods to C for P250,000 at a 40% mark-up. C sold 70% of the goods to B for P250,000. B in turn sold 65% of the goods to outside parties for P300,000.

Required -

1. Compute the consolidated cost of sales.

a) 274,120

b) 50,120

c) 59,528

d) 283,528

2. Compute the consolidated gross profit.

a) 149,880

b) 240,472

c) 249,880

d) 140,472