29. Lion Company purchased inventory from Dove Corporation for P120,000 on October 4,2020, and resold 80% to outsider before end of the year, for P140,000. Dove manufacturedthe inventory sold to Lion for the following costs: Direct materials - P40,000; Direct labor- P20,000; Overhead - applied at 75% of direct labor costs. Lion owns 70% of Dove.Assume that there are no other transactions occur đuring 2020.How much is the consolidated sales?a. P260,000b. P120,000c. P98,000d. P140,00030. How much is the consolidated cost of sales?a. P60,000b. P96,000c. P45,000d. P75,00031. The controlling interest in the consolidated gross profit is:a P45,000b. P30,800c. P69,500d. P69,200e. P71,20032. The amount of inventory that will be shown in the consolidated statements is:a. P24,000b. P16,800c. P39,000d. P15,000

SOLUTION FORMULA GROSS PROFIT = SALES - COGS.

29. Lion Company purchased inventory from Dove Corporation for P120,000 on October 4, 2020, and resold 80% to outsider before end of the year, for P140,000. Dove manufactured the inventory sold to Lion for the following costs: Direct materials – P40,000; Direct labor - P20,000; Overhead -applied at 75% of direct labor costs. Lion owns 70% of Dove. Assume that there are no other transactions occur during 2020. How much is the consolidated sales? a P260,000 b. P120,000 c. P98,000 d. P140,000 30. How much is the consolidated cost of sales? a P60,000 b. P96,000 c. P45,000 d. P75,000 31. The controlling interest in the consolidated gross profit is a P45,000 b. P30,800 c. P69,500 d. P69,200 e P71,200 32. The amount of inventory that will be shown in the consolidated statements is a P24,000 b. P16,800 c. P39,000 d. P15,000

29. Lion Company purchased inventory from Dove Corporation for P120,000 on October 4, 2020, and resold 80% to outsider before end of the year, for P140,000. Dove manufactured the inventory sold to Lion for the following costs: Direct materials – P40,000; Direct labor - P20,000; Overhead -applied at 75% of direct labor costs. Lion owns 70% of Dove. Assume that there are no other transactions occur during 2020. How much is the consolidated sales? a P260,000 b. P120,000 c. P98,000 d. P140,000 30. How much is the consolidated cost of sales? a P60,000 b. P96,000 c. P45,000 d. P75,000 31. The controlling interest in the consolidated gross profit is a P45,000 b. P30,800 c. P69,500 d. P69,200 e P71,200 32. The amount of inventory that will be shown in the consolidated statements is a P24,000 b. P16,800 c. P39,000 d. P15,000

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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