What is the consolidated cost of goods sold? ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible ofP300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financialstatementsre as follows:ABCSalesCost of goods soldOperating ExpensesDividend IncomeNet Income800,000(535,000)(100,000)35,000EFG600,000(400,000)(100,000)200,000100,000Retained Earnings, begNet IncomeDividend PaidRetained Earnings, end1,300,000200,000(100,000)1,400,000850,000100,000(50,000)900,000Cash and ReceivablesInventory300,000700,000400,000298,000902,0001,000,000(300,000)2,300,000Investment in EFGFixed AssetsAccumulated DepreciationTotals600,000(200,000)1,400,000LabilitiesOrdinary ShareAccumulated ProfitTotals600,000300,0001,400,0002,300,000400,000100,000900,0001,400,000EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end30% remained. EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year-end, 20% isleft. Compute for Consolidated Cost of Goods sold.

On 30.06.2021, ABC acquired EFG = 70% Financial statement of 2022 states that : 1. In 2021, EFG sold…

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Accounting

What is the consolidated cost of goods sold?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statementFre as follows: АВС EFG Sales Cost of goods sold Operating Expenses Dividend Income Net Income 800,000 600,000 (400,000) (100,000) (535,000) (100,000) 35,000 200,000 100,000 Retained Earnings, beg Net Income Dividend Paid 1,300,000 200,000 850,000 100,000 (50,000) 900,000 Retained Earnings, end (100,000) 1,400,000 Cash and Receivables 300,000 700,000 Inventory Investment in EFG Fixed Assets Accumulated Depreciation Totals 400,000 298,000 902,000 1,000,000 (300,000) 2,300,000 600,000 (200,000) 1,400,000 Labilities Ordinary Share Accumulated Profit | Totals 400,000 100,000 600,000 300,000 1,400,000 2,300,000 900,000 1,400,000 EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. EFG sells ABC inventory costing P200,000…
ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statements are as follows: ABC EFG Sales Cost of goods sold Operating Expenses Dividend Income Net Income 800,000 (535,000) (100,000) 35,000 200,000 600,000 (400,000) (100,000) 100,000 Retained Earnings, beg Net Income Dividend Paid 1,300,000 200,000 (100,000) 1,400,000 850,000 100,000 (50,000) 900,000 Retained Earnings, end Cash and Receivables Inventory Investment in EFG Fixed Assets Accumulated Depreciation Totals 400,000 298,000 902,000 1,000,000 300,000 700,000 (300,000) 2,300,000 600,000 (200,000) 1,400,000 Labilities Ordinary Share 600,000 300,000 400,000 100,000 Accumulated Profit Totals 1,400,000 2,300,000 900,000 1,400,000 ABC sold EFG inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. ABC sells EFG inventory costing P200,000…
ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statements-re as follows: EFG 600,000 (400,000) (100,000) ABC Sales Cost of goods sold Operating Expenses Dividend Income Net Income 800,000 (535,000) (100,000) 35,000 200,000 100,000 Retained Earnings, beg Net Income Dividend Paid Retained Earnings, end 1,300,000 200,000 (100,000) 1,400,000 850,000 100,000 (50,000) 900,000 Cash and Receivables |Inventory Investment in EFG Fixed Assets Accumulated Depreciation Totals 400,000 300,000 298,000 902,000 1,000,000 (300,000) 2,300,000 700,000 600,000 (200,000) 1,400,000 Labilities Ordinary Share Accumulated Profit Totals 600,000 300,000 1,400,000 2,300,000 400,000 100,000 900,000 1,400,000 EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. EFG sells ABC inventory costing P200,000…
· On January 1, 2020, P Company acquired 80% of S Company for P2,000,000. The fair value of identifiable net assets is P1,800,000. NCI is measured at fair value. During 2020, P Company ships merchandise to S Company costing P800, 000 at 25% above cost. Additional data are as follows: Р Company 5,500,000 3,200,000 650,000 S Company 2,500,000 1,600,000 300,000 Sales Cost of Sales Operating Expense The ending inventories of S Company includes merchandise from P Company amounting to P50,000. Impairment of goodwill is P20,000. Consolidated cost of sales is reported at: a. P4,800,000 b. Р3,800,000 c. P4,010,000 d. P3,810,000
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