Solution-What are the consolidated sales and cost of goods

What are the consolidated sales and cost of goods sold

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Top Company holds 90 percent of Bottom Company's common stock. In the current year, Top reports sales of $816,000 and cost of goods sold of $612,000. For this same period, Bottom has sales of $303,000 and cost of goods sold of $212,100.

During the current year, Bottom sold merchandise to Top for $120,000. The parent still possesses 30 percent of this inventory at the current year-end. Bottom had established the transfer price based on its normal gross profit rate. What are the consolidated sales and cost of goods sold?

Reference no: EM132345523

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What are the consolidated sales and cost of goods sold

Reference no: EM132345523

Reference no: EM132345523

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