Reference no: EM133171479
Questions -
Q1. BB Inc., acquired a 60 percent interest in HH Company several years ago. During 20x7, HH sold inventory costing P75,000 to BB for P100,000. A total of 16 percent of this inventory was not sold to outsiders until 20x8. During 20x8, HH sold inventory costing P96,000 to BB for P120,000. A total of 35 percent of this inventory was not sold to outsiders until 20x9. In 20x8, BG reported cost of goods sold of P380,000 while HH reported P210.000. What is the consolidated cost of goods sold in 20x8?
Q2. During 20x9, PP Corporation recorded sales of inventory costing P500,0000 to SS Company, its wholly owned subsidiary, on the same terms as sales made to third parties. At December 31,20x9, SS held one-fifth of this goods inventory. The following information pertains to PP and SS's sales for 20x9:
|
|
Park
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Small
|
|
Sales
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P2,000,000
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P1,400,000
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Less: Cost of sales
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(800,000)
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(700,000)
|
|
Gross Profit
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P1,200,000
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P700,000
|
In its 20x9 consolidated income statement, what amount should PP report as cost of sales?