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Question - Mcgregor Plc acquired 75% of the issued share capital and voting rights of Tavernier Ltd on 1 January 2020.
The consolidated cost of sales of Mcgregor Plc and its subsidiary undertaking for the year ended 31 December 2021, before taking into account any adjustments required in respect of the information below, is £395,000.
During the year Mcgregor Plc sold goods to Tavernier Ltd for £130,000. 70% of these goods still remain in inventories at the end of the year. The goods were sold at a mark-up of 25% on cost.
Required - What is the consolidated cost of sales for the year ending 31 December 2021?
A. £283,200
B. £278,650
C. £287,750
D. £246,800
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