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

Related questions

Q: Beach Haven Co. purchases 30% of the stock of Ship Bottom, Inc.on January 1.2021. The book values of…

A: Beach Haven Co. purchases 30% of the stock of Ship Bottom, Inc. on Jan 1, 2021. Beach Haven Co. take…

Q: On October 15, 2020, Oil Products Co. purchased 4,000 barrels of fuel oil with a cost of $240,000…

A: A balance sheet is a financial statement that provides a snapshot of a company's financial position…

Q: On October 1, 2020, Croatan Corporation finalized its plans to discontinue operations of its retail…

A: Introduction A Particular division in an organization which the management of organization decides…

Q: In February 2019, Wall Corp decided to sell its entire Plant division. The Plant division was a…

A: The income statement can be defined as a financial statement which reports all the expenses and…

Q: On June 28 Lexicon Corporation acquired 100% of the common stock of Gulf & Eastern. The purchase…

A: Amortization of intangible assets: Allocation of the cost of intangible assets over its service or…

Q: Atoms, Inc. committed to sell a division on March 22, 2022. It sold the division on June 14, 2024.…

A: A component of a business that has been discontinued or is being held for sale can have its…

Q: During 2023, Door Inc. decided to dispose of Bell Division, which is considered a separate reporting…

A: The company is doing business to generate a profit. Sometimes, a company operates in two or more…

Q: Proform acquired 70 percent of ClipRite on June 30, 2020, for $910,000 in cash. Based on ClipRites…

A: The cost of a product to a distributor, producer, or retailer is known as the cost of goods sold…

Q: Blupa Ltd acquired a 25% interest in Trinity Ltd for $145,000 on 1 July 2020. At that date,…

A: Journal - A journal is a thorough account that documents all of a company's financial activities. It…

Q: BoTeck is a full-service technology company. It provides equipment, installation services, and…

Q: What are the consolidated balances for? Cost of Goods Sold Net income attributable to non…

A: Consolidation is a process of acquiring the various small companies by the large ones by obtaining…

Q: operating considered separate components as defined by generally accepted accounting principles. The…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: On the 20th June 2023, Proton Motors Ltd sold inventories costing $120,000 to Electron Ltd for…

A: Proton Motors Ltd sold inventories to Electron Ltd at a loss, leading to a reduced tax liability for…

Q: Alex, Inc., buys 30 percent of Steinbart Company on January 1, 2020, for $762,000. The equity method…

A: Introduction: Money earned from stock dividends is referred to as equity income. A dividend is…

Q: Pearl company acquired 80% of Coral company on January 1, 2020. On December 2021 Pearl reported…

Q: Broncos Corporation acquired the following assets associated with a manufacturing facility for a…

A: The question is based no the concept of Financial Accounting. As per the Bartleby guidelines we are…

Q: Company S signs several purchase contracts in 2022. Under the terms of one contract, Company S will…

A: Journal Entries2022Account TitlesDebitCreditLoss on Purchase Contracts $100,000 Liability for…

Q: n December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale…

A: Net income from continuing operations is Presented on the income statement of the Company after…

Q: On September 15, 2020, ZTH Inc.'s Board of Directors developed a formal plan to dispose of its Horse…

A: Transactions of the Horse division must be recorded separately after the company has decided to…

Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

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 đuring 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

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Blossom Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2026 at à cost of $1,077,300. At December 31, 2025, the raw materials to be purchased have a market value of $1,027,500. In 2026, Blossom paid $1,077,300 to obtain the raw materials which were worth $1,027.500. Prepare the entry to record the purchase assuming the company uses a periodic inventory system. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the amounts.)
Vikrambahi
On December 31, 2021, Max Company committed to a plan to discontinue the operations of Underwear Division. The fair value of the facilities was P1,000,000 less than carrying amount on December 31, 2021. The division's operating loss for 2021 was P2,000,000 and the division was actually sold for P1,200,000 less than the carrying amount in 2022. The entity estimated that the division's operating loss for 2022 would be P500,000, The income tax rate is 30% What amount should be reported as loss from discontinued operation in 2021?
During 2020, a parent 'sold' inventory priced at $10500 to its subsidiary. The parent's cost of these goods was $5000. During the year, the subsidiary sold 70% of that inventory to outside customers for $20000. What amount should be reported in the 2020 consolidated income statement for SALES? BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. Your Answer:
P Company owns 70% of S Company's common stock. During 2020, S sold $800,000 of merchandise to P With a profit margin of 25% of the cost. At December 31, 2016, one-fourth (1/4) of the merchandise remained in P's inventory.. The amount of unrealized inter-company profit that should be eliminated on the work-paper is Select one: O 28000 O 40000 200000 30000
On June 28, Lexicon Corporation acquired 100% of the common stock of Gulf & Eastern. The purchase price allocation included the following items: $4 million, patent; $3 million, developed technology; $2 million, indefinite-life trademark; $5 million, goodwill. Lexicon’s policy is to amortize intangible assets using the straight-line method, no residual value, and a five-year useful life. What is the total amount of expenses (ignoring taxes) that would appear in Lexicon’s income statement for the year ended December 31 related to these items?
Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured 1,900 units of product and incurred $351,500 direct material cost and $194,750 direct labor costs. For financial statement purposes, XYZ capitalized $149,750 indirect costs to inventory. For tax purposes, it had to capitalize $180,750 indirect costs to inventory under the UNICAP rules. At the end of its first year, XYZ held 190 units in inventory. In its second year of operations, XYZ manufactured 3,800 units of product and incurred $722,000 direct material cost and $418,000 direct labor costs. For financial statement purposes, XYZ capitalized $282,000 indirect costs to inventory. For tax purposes, it had to capitalize $336,000 indirect costs to inventory under the UNICAP rules. At the end of its second year, XYZ held 380 items in inventory. Required: a. Compute XYZ's cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ…
s
Concord Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2026 at a cost of $1,024,100. At December 31, 2025, the raw materials to be purchased have a market value of $978,600. In 2026, Concord paid $1,024,100 to obtain the raw materials which were worth $978,600. Prepare the entry to record the purchase assuming the company uses a periodic inventory system. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit
kk.2
15. Northridge, Inc., buys 40% of Matador Company on January 1, 2019. for $550,000. The equity method of accounting is to be used, Matador's net assets on that date were $1.2 million. Any excess of cost over book value is attributable to a trade name with a 20-year remaining life. Matador immediately begins supplying inventory to Northridge as follows: Amount Held by Northridge Year Cost to Matador Transfer Price At Year End (at transfer price)2019 $70,000 $100,000 $25,0002020 $96,000 $150,000 $45,000Inventory held at the end of one year by Northridge is sold at the beginning of the next. Matador reports net income of $100,000 in 2019 and $150.000 in 2020 and declares (and pays)…
The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $8 million. The loss from operations of the segment during 2021 was $3.6 million. Pretax income from continuing operations for the year totaled $5.8 million. The income tax rate is 25%. The estimated fair value of the segment's assets, less costs to sell, on December 31 was $7 million. Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions.)