Given below is an extract from the income statements of Krag Co and its subsidiary Lag Co Lag Co $ 000 Revenue Cost of sales Gross profit Krag Co $ 000 120,000 (70,000) 50,000 88,000 (40,000) 48,000
Given below is an extract from the income statements of Krag Co and its subsidiary Lag Co Lag Co $ 000 Revenue Cost of sales Gross profit Krag Co $ 000 120,000 (70,000) 50,000 88,000 (40,000) 48,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![13. Given below is an extract from the income statements of Krag Co and its subsidiary Lag Co
Krag Co
Lag Co
$ 000
$ 000
Revenue
Cost of sales
Gross profit
[
120,000
(70,000)
50,000
During the year ended 31 December 20X9 Krag Co sold goods which originally cost $10 000
000 to Lag Co for $15 000 000 Lag Co still had one quarter of these goods in inventory at 31
December 20X9. Lag Co still owed Krag Co $2 000 000 in respect of these goods.
What is the figure for group cost of sales for the year?
A [ ] $94 250
B
[
]
$93 000
[
]
$93 750
]
$96 250
[
88,000
(40,000)
48,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F49538ebe-c27d-4928-9455-7a39c29a294f%2F3b75c9a3-51c2-4d3b-bdfb-700008d799aa%2F0hokrxl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:13. Given below is an extract from the income statements of Krag Co and its subsidiary Lag Co
Krag Co
Lag Co
$ 000
$ 000
Revenue
Cost of sales
Gross profit
[
120,000
(70,000)
50,000
During the year ended 31 December 20X9 Krag Co sold goods which originally cost $10 000
000 to Lag Co for $15 000 000 Lag Co still had one quarter of these goods in inventory at 31
December 20X9. Lag Co still owed Krag Co $2 000 000 in respect of these goods.
What is the figure for group cost of sales for the year?
A [ ] $94 250
B
[
]
$93 000
[
]
$93 750
]
$96 250
[
88,000
(40,000)
48,000
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