Reference no: EM131800296

Question - This year, Rose Company acquired all of the common stock of Hayley. At the end of the current year, balances of selected accounts and other information for each of the companies were as follows:

Rose Hayley

Sales 2582,000 1734,000

Account Receivable 580,000 235,000

Sales to Hayley during the year 80,000

Sales to Rose during the yea. 20,000

Gross profit on sale 25% 30%

At the end of the year, 50% of the inventory that Rose sold to Hayley remained in Haylay's inventory, and $30,000 of the amount of the sales was unpaid. Rose still owes half of the amount of its purchases to Haylay, but had sold all of the inventory it had acquired from Hayley by the end of the year.

What the amount of consolidated cost of goods sold at end of the year?

a. 3,107,900

b. 3,150,300

c. 3,040,300

d. 3,050,300