Reference no: EM132785749

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.

problem 1: Compute for the consolidated cost of sales.

a) 274,120
b) 50,120
c) 59,528
d) 283,528

problem 2: Compute the consolidated gross profit.

a) 149,880
b) 240,472
c) 249,880
d) 140,472