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inventory that should appear in the December 31, 2013 consolidated balance sheet should amount to:

inventory that should appear in the December 31, 2013 consolidated balance sheet should amount to:

FINANCIAL ACCOUNTING
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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11. P Company owns controlling interests in S and T Corporations, having acquired an 80 percent interest in S in 2011 and a 90 percent interest in T on January 1, 2012. P's investments in S and T were at book value equal to fair value. Inventories of the affilited companies at December 31, 2012 and December 31, 2013 were as follows: December 31, 2012 December 31, 2013 P inventories P60,000 P54,000 31,250 36,000 S inventories 38,750 24,000 Tinventories P sells to S at a 25 percent markup based on cost, and T sells to P at a markup of 20 percent. P's beginning and ending inventories for 2013 consisted of 40% and 50%, respectively, of goods acquired from T. All of S inventories consisted of merchandise acquired from P. The inventory that should appear in the December 31, 2013 consolidated balance sheet should amount to: a. P109.600 b. P106.000 G. P110.500 d. P121.250
Transcribed Image Text:11. P Company owns controlling interests in S and T Corporations, having acquired an 80 percent interest in S in 2011 and a 90 percent interest in T on January 1, 2012. P's investments in S and T were at book value equal to fair value. Inventories of the affilited companies at December 31, 2012 and December 31, 2013 were as follows: December 31, 2012 December 31, 2013 P inventories P60,000 P54,000 31,250 36,000 S inventories 38,750 24,000 Tinventories P sells to S at a 25 percent markup based on cost, and T sells to P at a markup of 20 percent. P's beginning and ending inventories for 2013 consisted of 40% and 50%, respectively, of goods acquired from T. All of S inventories consisted of merchandise acquired from P. The inventory that should appear in the December 31, 2013 consolidated balance sheet should amount to: a. P109.600 b. P106.000 G. P110.500 d. P121.250
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