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

See similar textbooks

Similar questions

Bullwinkle Company owns a equipment with a cost of $365,300 and accumulated depreciation of $55,400 that can be sold for $277,400, less a 3% sales commission. Alternatively, Bullwinkle Company can lease the equipment to another company for three years for a total of $286,700, at the end of which there is no residual valoe. In addition, the repair, insurance, and property tax expense that would be incurred by Bullwinkle Company on the equipment would total $15,100 over the three years. Prepare a differential analysis on March 23 os to whether Buliwinkle Company should lease (Alternative 1) or sell (Alternative 2) the equipment. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Lease Equipment (Alt. 1) or Sell Equipment (Alt. 2) March 23 Differential Effect Lease Equipment Sell Equipment (Alternative 1) on Income (Alternative 2) (Alternative 2) Revenues Costs Income (Loss) Should Bullwinkle Company lease (Alternative 1) or sell…
Ebasan Compary acquired a new machine with an invoice cost of P1,600,000, Ebasan incurred transportation cost P50,000 and installation cost P140,000. The terms of the acquisition include a 5% discount if payment is made in 10 days. The entity paid beyond the discount period. The entity's chief engineer with monthly salary of P60,000 spent two-thirds of his time during trial run of the new machine. The entity requested an allowance from the supplier because the machine proved to be of less than standard performance capability. The supplier granted a cash allowance of P100,000. The cost of removing on aid machine before the new machine was installed amounted to P10,000. The operator of the old machine who was laid off due to the acquisition of the new machine was paid a gratuity of P30,000. What amount should Ebasan record as cost of the new machine?
am. 105.
The Peggy Company sold merchandise to its wholly owned subsidiary, Sally Company. The following information is available: Sale price to Sally $36,000 Cost to Peggy $27,000 Sally sold 70 % of the inventory to an outside customer for $25,200. Prepare the elimination journal entry. If the other 30% was sold to an outside customer during the next year and there was not any other inter-co transactions what would be the journal entry next year?
During 2019, Parent Company sold goods costing $ 21,000 to its subsidiary, Synergy, at a gross profit of 30%. Synergy had none of this inventory on hand at the end of 2019. What is the value of Sales? Select one: O a. 26,000 O b. 25,000 O c. 26,250 O d. 30,000
Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on September 1, 2021, the company adopted a plan to sell the assets of the division. The actual sale was completed on December 15, 2021, at a price of $800,000. The book value of the division’s assets was $1,410,000, resulting in a before-tax loss of $610,000 on the sale.The division incurred a before-tax operating loss from operations of $260,000 from the beginning of the year through December 15. The income tax rate is 25%. Chance’s after-tax income from its continuing operations is $750,000. Required:Prepare an income statement for 2021 beginning with income from continuing operations. Include appropriate EPS disclosures assuming that 100,000 shares of common stock were outstanding throughout the year. (Amounts to be…
The closing raw materials inventory of Sunuco Manufacturing Company amounted to P345, 000 at December 31, 2018. This total includes an item of raw material (material Sun) with a cost of P100,000 with an estimate net realizable value of P80,000. Immediately after the balance sheet date, material Sun was applied to production and the cost of the finished product were material Sun was applied revealed that its net selling price exceeds the cost of producing the finished goods. As of December 31, 2018, what amount of raw materials inventory should Sunuco Manufacturing Company report?
I need the answer as soon as possible
On January 2021 Bob Company sells an item of machinery to Jaison Company for its fair value of $300,000. The asset had a carrying amount of $120,000 prior to the sale. The sale represents the satisfaction of a performance obligation, in accordance with IFRS 15 Revenue from Contracts with Customers. Bob Company enters on to a contracte with Jaison Company for the right to use the asset for the next five years. Annual payments of $50,000 are due at the end of each year. The interest rate implicit in the lease is 10%. The present value of the annual lease payments is $190,000. The remaining useful life of the machine is much greater than the lease term. Required: 1. Explain how it will be recorded in the books of Bob Company and show the necessary journal entries. 2. Why do companies prefer lease financing instead of direct purchase? Explain any three valid reasons.
On October 1, 2020, Popsters Company consigned 240 posters to AshMatt Inc. Popsters policy in setting its selling price is 160% mark-up on cost. Freight on shipment was paid by Popsters Company for P12,000. Any costs incurred by the consignee in relation to the consigned goods are all reimbursable. On December 17, AshMatt Inc. submitted an account sale stating that it had sold 40% of the total consigned units and AshMatt remitted P116,720 after deducting 12% commissions and selling expense of P10,000.1. The net income recognized by Popsters Company is2. Using the information above, and assuming that 20% of the consigned units were returned on 12/22 how much is the cost of ending inventory in the books of Popsters Company?Using the information above, and assuming that 20% of the consigned units were returned on December 22 (AshMatt incurred 5,000 shipping costs) and 50% of the goods returned were found obsolete when received by Popsters Company on December 24.3. How much is the cost of…