What is the group cost of sales for Pea Group for the year ended 31 December 20X9?
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Pea acquired 75% of the equity shares of Hion on 31 August 20X9.
The statement of profit or loss extracts for the year ended 31 December 20X9 showed:
Pea Hion
Revenue 240,000 148,800
Cost of sales 60,000 38,400
During the post-acquisition period, sales of $6,000 were made by Pea to Hion. Half of these goods remained in the inventory at the year-end. Pole had made a mark-up on cost of 25% on these sales.
What is the group cost of sales for Pea Group for the year ended 31 December 20X9?
A. $133,400 B. $132,200 C. $83,400 D. $67,400
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- H bought 90% of the equity share capital of S, two years ago on 1January 20X2 when the retained earnings of S stood at $5,000. Statements of financial position at the year end of 31 December 20X3 areas follows: S transferred goods to H at a transfer price of $18,000 at a mark-up of 50%. Two-thirds remained in inventory at the year end. The current account in H and S stood at $22,000 on that day. The H group uses the fair value method to value the non-controlling interest. The fair value of the non-controlling interest at acquisition was $4,000 Prepare the consolidated statement of financial position at 31/12/X3.Fromage purchased 80% of the equity shares in Frais on 1 January 20X1. During the year ended 31 December 20X1, Fromage sold inventory to Frais at a sales price of £50,000. None of the goods remained in Frais' inventory. Fromage applied a margin of 20%. Extracts from the statement of profit or loss for the two entities are shown below: Fromage Frais £000 £000 Revenue 1,000 750 Cost of sales (650) (250) What would be the revenue and cost of sales figures reported in the consolidated statement of profit or loss for the year ended 31 December 20X1? Answer to the nearest £000 a. Revenue 1700 Cost of sales 850 O b. Revenue 1750 Cost of sales 910 O c. Revenue 1700 Cost of sales 860 d. None of these options are correct Revenue 1550 Cost of sales 800Paneer owns 30% of Lassi and has done so for many years. During the year ended 31 December 20X1, Lassi made a net profit of £1.5m. Lassi sold inventory costing £1m to Paneer at a mark-up of 50%. 40% of the goods are still in Paneer's inventory at the year end. What is the "Income from associates" to be shown in the consolidated Statement of profit or loss for the year ended 31 December 20X1? a. £1,300,000 b. £450,000 C. £360,000 d. £390,000 O e. £150,000 O f. £300,000 g. £250,000
- P acquired 70% of S in 20X8. The statements of profit or loss of the two companies for the year ended 31 December 20X9 showed revenues: P $100000 S $70000 During November 20X9, S sold goods to P for $8000. None of these items remained in inventory at the end of year. What is the consolidated revenue for P for the year ended 31 December 20X9?Basil acquired 60% of Parsley on 1 March 20X9. In September 20X9 Basil sold $46,000 worth of goods to Parsley. Basil applies a 30% mark-up to all its sales. 25% of these goods were still held in inventory by Parsley at the end of the year. An extract from the draft statements of profit or loss of Basil and Parsley at 31 December 20X9 is: Parsley $ 421,500 Basil $ 955,000 Revenue Cost of sales (407,300) 547,700 (214,600) 206,900 Gross profit All revenue and costs arise evenly throughout the year. What will be shown as gross profit in the consolidated statement of profit or loss of Basil for the year ended 31 December 20X9?2.Wye acquired 100% of the equity share capital of Derwent on 1 July 20X4. For the year ended 30 June 20X5, the cost of sales of Wye was $250,000 and the cost of sales of Derwent was $130,000. During the year ended 30 June 20X5, Wye sold goods costing $25,000 to Derwent for $35,000. At the year-end, half these goods were still in inventory. What is the consolidated cost of sales for the year ended 30 June 20X5? a. $340,000 b. $350,000 c. $345,000 d. $360,000
- Goddy Company owns 80% of the common stock of Morris, Inc. In the current year, Goddy reports sales of $10,000,000 and cost of goods sold of $7,500,000. For the same period, Morris has sales of $200,000 and cost of goods sold of $160,000. During the year, Goddy sold merchandise to Morris for $60,000 at a price based on the normal markup. At the end of the year, Morris still possesses 30 percent of this inventory. Compute consolidated cost of goods so ld. Select one: a. $7,604,500. b. $7,500,000. c. $7,660,000. d. $7,615,000. e. $7,600,000.On January 1, Year 2, PAT Ltd. acquired 90% of SAT Inc. when SAT's retained earnings were $1,000,000. There was no acquisition differential. PAT accounts for its investment under the cost method. SAT sells inventory to PAT on a regular basis at a markup of 30% of selling price. The intercompany sales were $160,000 in Year 2 and $190,000 in Year 3. The total amount owing by PAT related to these intercompany sales was $60,000 at the end of Year 2 and $50,000 at the end of Year 3. On January 1, Year 3, the inventory of PAT contained goods purchased from SAT amounting to $70,000, while the December 31, Year 3, inventory contained goods purchased from SAT amounting to $80,000. Both companies pay income tax at the rate of 40%. Selected account balances from the records of PAT and SAT for the year ended December 31, Year 3, were as follows: Inventory Accounts Payable Retained Earnings, Beg. of Year Sales Cost of Sales Income Tax Expense PAT $510,000 700,000 2,500,000 4,100,000 3,200,000…Pirates PLC acquired 80% of Casino on 1 June 20X1. Sales from Casino to Pirates PLC throughout the year ended 30 September 20X1 were consistently $1 million per month. Casino made a mark-up on cost of 25% on these sales. At 30 September 20X1 Pirates PLC was holding $2 million inventory that had been supplied by Casino in the post-acquisition period. By how much will the unrealised profit decrease the profit attributable to the non-controlling interest for the year ended 30 September 20X1? Select one alternative $1,000,000 $80,000 $500,000 $400,000
- Jarvis owns 30% of McLintock. During the year to 31 December 20X4 McLintock sold $2 million of goods to Jarvis, of which 40% were still held in inventory by Jarvis at the year end. McLintock applies a mark-up of 25% on all goods sold. What effect would the above transactions have on group inventory at 31 December 20X4? A Debit group inventory $48,000 B Debit group inventory $160,000 C Credit group inventory $48,000 D No effect on group inventoryBraviary Corp. acquired a 70% interest in Vullaby Company in 20A. For the year ended December 31, 20A and 20B, Vullaby Company reported an income of P160,000 and P180,000, respectively. During 20A, Vullaby sold merchandise to Braviary Corp. for P20,000 at a profit of P4,000. The merchandise was later resold by Braviary Corp. to outsider for P30,000 during 20B. For consolidation purposes, what is the minority interest's share of Vullaby's net income for 20A and 20B, respectively. * A. P49,200 and P52,800 B. Answer not given C. P53,200 and P50,000 D. P46,800 and P55,200 E. P48,000 and P54,000Palm Company owns 100% of Soso Company. During year X1, Soso sold merchandise costing $50,000 to Palm for $80,000. As of 12/31/X1, 40% of the merchandise remained in Palm's inventory. Assuming that Soso reported a $100,000 net income an paid $20,000 of dividends in year X1, how much investment income should should Palm recognize in year X1?