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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.
1. Compute for 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
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