Baelfire Corporation owns an 80% interest in Sheriff Corporation acquired several years ago. Sheriff regularly sells merchandise to its parent at 125% of Sheriff's cost. Gross profit data of Baelfire and Sheriff for the year 2020 are as follows: Baelfire P650,000 520,000 P 130,000 Sheriff P520,000 416,000 P104,000 Sales . Cost of goods sold. Gross profit . During 2020, Baelfire purchases inventory items from Sheriff at a transfer price of P260,000. Baelfire's December 31, 2019 and 2020 inventories included goods acquired from Sheriff of P65,000 and P81,250, respectively. The Unrealized profits in the year-end 2019 and 2020 inventories were: 65,000 and 81,250 respectively 30,400 and 13,000 respectively 13,000 and 16,250 respectively 520,000 and 65,000 respectively

Baelfire Corporation owns an 80% interest in Sheriff Corporation acquired several years ago. Sheriff regularly sells merchandise to its parent at 125% of Sheriff's cost. Gross profit data of Baelfire and Sheriff for the year 2020 are as follows: Baelfire P650,000 520,000 P 130,000 Sheriff P520,000 416,000 P104,000 Sales . Cost of goods sold. Gross profit . During 2020, Baelfire purchases inventory items from Sheriff at a transfer price of P260,000. Baelfire's December 31, 2019 and 2020 inventories included goods acquired from Sheriff of P65,000 and P81,250, respectively. The Unrealized profits in the year-end 2019 and 2020 inventories were: 65,000 and 81,250 respectively 30,400 and 13,000 respectively 13,000 and 16,250 respectively 520,000 and 65,000 respectively

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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