Reference no: EM133029

Question :

Bellgrade, Inc., acquired a 60 % interest in Hansen Company various years ago. During 2012, Hansen sold inventory costing $90,200 to Bellgrade for $110,000. A total of 12% of this inventory was not sold to outsiders until 2013. During 2013, Hansen sold inventory costing $294,800 to Belgrade for $335,000. A total of 29 percent of this inventory was not sold to outsiders until 2014. In 2013, Belgrade reported cost of goods sold of $527,500 while Hansen reported $422,500. What is the consolidated cost of goods sold in 2013?

$624,282.

$635,400.

$959,282.

$605,718.

Top Company holds 90% of Bottom Company's common stock. In the existing year, Top reports sales of $862,000 and cost of goods sold of $646,500. For this similar period, Bottom has sales of $363,000 and cost of goods sold of $235,950. During the existing year, Bottom sold merchandise to Top for $110,000. The parent still possesses 30% of this inventory at the existing year-end. Bottom had established the transfer price based on its normal markup. What are the consolidated sales and cost of goods sold?

$1,115,000 and $805,450.

$1,078,700 and $894,000.

$1,115,000 and $783,450.

$1,115,000 and $784,000.

Top Company holds 90% of Bottom Company's common stock. In the existing year, Top reports sales of 990,000 and cost of goods sold of $544,500. For this same period, Bottom has sales of $490,000 and cost of goods sold of $294,000 . In the current year, Top sold merchandise to Bottom for $290,000 . The subsidiary still possesses 50% of this inventory at the existing year-end. Top had established the transfer price based on its normal markup. What are the consolidated sales and cost of goods sold?

$1,190,000 and $824,000

$1,190,000 and $679,000

$1,141,000 and $621,000

$1,190,000 and $613,750