Reference no: EM132928251
Question - The following extracts relate to Prime and its wholly owned subsidiary Secondary:
Statement of Financial Performance
Revenue
Prime 1,200,000
Secondary 900,000
Cost of sales
Prime 800,000
Secondary 600,000
Statement of Financial Position
Inventory
Prime 170,000
Secondary 50,000
During the year the following transactions took place:
Prime's sales to Secondary: 100,000; 40% of these sales are still in inventory at balance date
Secondary's sales to Prime: $80,000; 20% of all these sales are still in inventory at balance date
Both Prime and Secondary make 10% profit on all sales (i.e., their profit = 10% of the given sales figures)
Profit in opening inventory of sales from Prime to Secondary: 1,000
Profit in opening inventory of sales from Secondary to Prime: 2,000
Required - What is the consolidated closing inventory figure?