and cost of goods sold of$7,500,000. For the same period, Shannon has sales of$200,000and cost of goods sold of$160,000. During the year, Patti sold merchandise to Shannon for$60,000at a price based on the normal markup. At the end of the year, Shannon still possesses 30 percent of this inventory.\\nAssume the same information, except Shannon sold inventory to Patti. Compute consolidated sales. 28Patti Company owns 80% of the common stock of Shannon, Incorporated. In the current year, Patti reportsand cost of goods sold of $7,500,000. For the same period, Shannon has sales of $200,000 and cost of goods sold of$160,000. During the year, Patti sold merchandise to Shannon for $60,000 at a price based on the normal markup. At the end ofthe year, Shannon still possesses 30 percent of this inventory.Assume the same information, except Shannon sold inventory to Patti. Compute consolidated sales.

COGS: The direct costs incurred in creating the commodities a company sells are referred to as the…

Answered: and cost of goods sold of $7,500,000.…

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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and cost of goods sold of

$7,500,000

. For the same period, Shannon has sales of

$200,000

and cost of goods sold of

$160,000

. During the year, Patti sold merchandise to Shannon for

$60,000

at a price based on the normal markup. At the end of the year, Shannon still possesses 30 percent of this inventory.\\nAssume the same information, except Shannon sold inventory to Patti. Compute consolidated sales.

28
Patti Company owns 80% of the common stock of Shannon, Incorporated. In the current year, Patti reports
and cost of goods sold of $7,500,000. For the same period, Shannon has sales of $200,000 and cost of goods sold of
$160,000. During the year, Patti sold merchandise to Shannon for $60,000 at a price based on the normal markup. At the end of
the year, Shannon still possesses 30 percent of this inventory.
Assume the same information, except Shannon sold inventory to Patti. Compute consolidated sales.

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