Rainy Afternoon Co. owns 80% interest in Sunny Morning Co.During 2011, Rainy sold inventories costing P200,000 to Sunny forP300,000. One-fourth of the inventories were unsold as OfDecember 31, 2011 and were included in Sunny's year-endstatement of financial position at the purchase price from RainyThe individual financial statements of Rainy and Sunny onDecember 31, 2011 show the following information:Rainy1,260,000Sunny380,000Inventory6,700,000(3,015,000)3,685,0002,700,000(1,755,000)945,000SalesCost of salesGross profitThere are no fair value adjustments arising from the businesscombination date.14) How much is the consolidated inventory on December 31, 2011?a. 1,615,000b. 1,590,000C. 1,665,000d. 1,585,00015) How much is the consolidated sales? ea. 9,400,000b. 9,100,000C. 9,375,000d. 9,700,00016) How much is the consolidated cost of sales?a. 4,695,000b. 4,495,000C. 4,565,000d. 4,545,000

The question is based on the concept of Consolidated Financial Statements.

Bainy Afternoon Co. owns 80% interest in Sunny MoPRIhg Co. During 2011, Rainy sold inventories costing P200,000 to Sunny for P300,000. One-fourth of the inventories were December 31, 2011 and were included in Sunny's year-eng statement of financial position at the purchase price from Rainy The individual financial statements of Rainy and Sunny or December 31, 2011 show the following information: unsold as of Sunny Rainy 1,260,000 6.700,000 Inventory 380,000 2,700,000

Bainy Afternoon Co. owns 80% interest in Sunny MoPRIhg Co. During 2011, Rainy sold inventories costing P200,000 to Sunny for P300,000. One-fourth of the inventories were December 31, 2011 and were included in Sunny's year-eng statement of financial position at the purchase price from Rainy The individual financial statements of Rainy and Sunny or December 31, 2011 show the following information: unsold as of Sunny Rainy 1,260,000 6.700,000 Inventory 380,000 2,700,000

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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