Degin your Mid Term Test Quinoa owns 80% of a subsidiary Hemp. During the year Hemp sold inventory costing £80,000 to Quinoa at a 25% mark up. Quinoa has since sold 40% of that inventory outside the group. The statement of financial position of each individual company shows inventory as follows: Quinoa £380,000 Hemp £120,000 Calculate the inventory that would be included in the consolidated Statement of financial position at the year end. a. £488,000 b. None of these options are correct C. £490,400 d. £480,000 e. £500,000 f. £464,000 g. £492,000

Degin your Mid Term Test Quinoa owns 80% of a subsidiary Hemp. During the year Hemp sold inventory costing £80,000 to Quinoa at a 25% mark up. Quinoa has since sold 40% of that inventory outside the group. The statement of financial position of each individual company shows inventory as follows: Quinoa £380,000 Hemp £120,000 Calculate the inventory that would be included in the consolidated Statement of financial position at the year end. a. £488,000 b. None of these options are correct C. £490,400 d. £480,000 e. £500,000 f. £464,000 g. £492,000

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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Question

begin your Mid Term Test
Quinoa owns 80% of a subsidiary Hemp. During the year Hemp sold inventory costing £80,000 to Quinoa
at a 25% mark up. Quinoa has since sold 40% of that inventory outside the group.
The statement of financial position of each individual company shows inventory as follows:
Quinoa £380,000
Hemp
£120,000
Calculate the inventory that would be included in the consolidated Statement of financial position
at the year end.
a. £488,000
O b. None of these options are correct
O c. £490,400
O d. £480,000
O e. £500,000
O f. £464,000
g. £492,000

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