User Account

All Pages

Consolidated sales and cost of goods sold

Assignment Help Accounting Basics
Reference no: EM13143180

Top Company holds 90 percent of the common stock of Bottom Company. In the current year, Top reports sales of $800,000 and cost of goods sold of $600,000. For this same period, Bottom has sales of $300,000 and cost of goods sold of $180,000. During the current year, Top sold merchandise to Bottom for $100,000. The subsidiary still possesses 40 percent of this inventory at the end of the current year. Top had established the transfer price based on its normal markup. What are consolidated sales and cost of goods sold?

a. $1,000,000 and $690,000

b. $1,000,000 and $705,000

c. $1,000,000 and $740,000

d. $970,000 and $696,000

e. None of the above.

f. Cannot determine answer with facts presented.

Reference no: EM13143180

Questions Cloud

What account would direct material cost assigned to job : The direct materials for Job #045391 were purchased in July and put into production in August. The job was not completed by the end of August. At the end of August, in what account would the direct material cost assigned to Job #045391 be located?
Deductions of lease payment as operating expenses : X company bought many equipment and sub-lease them with some margin to its customers. Customers will own after the lease payments. Question: Can X company claim depreciation of these equipments given of sublease? X company claims deductions of lea..
What span error does environmental effect generate : Range of 0 to 5 Volts. An environmental effect, such as a change in ambient temperature, lowers the sensitivity by 2%. What span error does this generate?
What direction will the demand for dunkin donuts : Dunkin Donuts raises the price of its French Vanilla coffee by 15%. The demand for Dunkin Donuts glazed doughnuts will change by what percentage and in what direction?
Consolidated sales and cost of goods sold : During the current year, Top sold merchandise to Bottom for $100,000. The subsidiary still possesses 40 percent of this inventory at the end of the current year. Top had established the transfer price based on its normal markup. What are consolida..
Reeve''s textbook : You must use the Reeve's textbook as one of your references. If needed you may use other resources such as books, articles, discussion board responses and case examples.
Firm times-interest-earned ratio : Ajax Corp's sales last year were $460,000, its operating costs were $362,500, and its interest charges were $12,500. What was the firm's times-interest-earned (TIE) ratio?
Compute total overhead cost applied to job : Compute the total overhead cost applied to Job 407. Would you expect substantially different amounts of overhead cost to be charged to some jobs if the company used a plantwide overhead rate based on direct labour cost instead of using departmental..
The terms hispanic and latino are umbrella : The terms Hispanic and Latino are umbrella terms for people from many different Spanish-speaking cultures in the Western Hemisphere

Reviews

Write a Review

Accounting Basics Questions & Answers

  Why the difference in price

consider two bonds. One is maturing in 5 years and one matures in 10 years. Each has a coupon of 8% paid annually. Each is priced to yield 9% as follows: 5 years $961.10 and 10 years $935.82. Why the difference in price?

  Calculate the net present value of the helicopter purchase

Bar T Ranches, Inc. is considering the purchase of a new helicopter for $400,000. The firm's old helicopter has a book value of $90,000, but can only be sold for $60,000. It was being depreciated at the rate of $13,500 per year for four more years..

  Contribution margin of central valley company

The Central Valley Company is a merchandising firm that sells a single product. The company's revenues and expenses for the last three months are given below:

  Company acquistion-purchase and pooling methods

Axel Corporation acquires 100% of the stock of Wheal Company on December 31, Year 4. The following information pertains to Wheal Company on the date of acquisition:

  Prepare a schedule indicating cash payments for operating

Acherman Company was organized on May 31 of the current year. Projected operating expenses for each of the first three months of operating are as follows: June $64000, July $81000, August $104500.

  Identify the relevant tax issues for jack

Many years ago, Jack purchased 400 shares of Canary stock. During the current year, the stock became worthless. It was determined that the company "went under" because several corporate officers embezzled a large amount of company funds. Identify ..

  Partnership assets and the agreed fair market values

At the end of the year prior to the sale, Rita's basis in RSTU was $60,000. The partnership allocates $12,000 of income to Rita for the portion of the year she was a partner. On the date of the sale, the partnership assets and the agreed fair mark..

  Tax asset and deferred tax liability

Assuming the U.S. tax rate is 35%, and that this is Nocera's first year of operations, what is Nocera's balance in its deferred tax asset and deferred tax liability accounts at year end?

  Multiple-step income statement

On a multiple-step income statement, gain or losses on sale of equipment would be shown:

  Problem related to depreciation method

A fixed asset has a cost of $12,000 and a salvage value of $3,000. The asset has a three-year life. If depreciation in the third year amounted to $1,500, which depreciation method was used?

  What was the cost of goods manufactured for may

The One Stop Print Shop has used the same overhead rate on all jobs. Job 216 was the only job in process at the beginning of the month. At that time it had incurred direct labor costs of $150 and total cost of $570.

  Compute the number of units transferred to finished goods

At the end of March, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor. Compute the number of units transferred to finished goods.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd