Not use ai financial accounting question P Company regularly sells merchandise to its 80%-owned subsidiary, SCorporation. In 2016, P sold merchandise that cost $192,000 to S for$240,000. Half of this merchandise remained in S's December 31, 2016inventory. In 2017, P sold merchandise that cost $300,000 to S for$375,000. Forty percent of this merchandise inventory remained in S'sDecember 31, 2017 inventory. Selected income statement informationfor the two affiliates for the year 2017 is as follows:PSSales revenue$1,800,000 $900,000Cost of goods sold $1,440,000 $750,000Gross profit$360,000 $150,000|Consolidated sales revenue for P and Subsidiary for 2017 are

Step 1: Define Sales RevenueThe money earned from routine company activities is referred to as…

Answered: P Company regularly sells merchandise…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.8MCP

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Habicht Company was formed in 2018 to produce a single product. The production and sales for the next 4 years were as follows: Required: 1. Determine the gross profit for each year under each of the following periodic inventory methods: a. FIFO b. LIFO c. Average cost (Round unit costs to 3 decimal places.) 2. Next Level Explain whether the companys return on assets (net income divided by average total assets) would be higher under FIFO or LIFO.
Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
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consolidate sales revenue
Pine Company owns an 80% interest in Salad Company and a 90% interest in Tuna Company. During 2016 and 2017, intercompany sales of merchandise were made by all three companies. Total sales amounted to $2,400,000 in 2016, and $2,700,000 in 2017. The companies sold their merchandise at the following percentages above cost. Pine 15% Salad 20% Tuna 25% The amount of merchandise remaining in the 2017 beginning and ending inventories of the companies from these intercompany sales is shown below. Reported net incomes (from independent operations including sales to affiliates) of Pine, Salad, and Tuna for 2017 were $3,600,000, $1,500,000, and $2,400,000, respectively. Required: Calculate the amount noncontrolling interest to be deducted from consolidated income in the consolidated income statement for 2017. Calculate the controlling interest in consolidated net income for 2017.
Pinky Company has 80% holdings over Silk Company. During 2018, Pinky Company sold merchandise to Silk Company for P120,000 and in turn, purchased P90,000 from Silk Company. Both sales were made on account. Intercompany sales of merchandise during 2018 were made at the following gross profit rates: Downstream intercompany sale Upstream intercompany sale 25% based on sales 20% based on cost As of December 31, 2018, 30% of all intercompany sales remain in ending inventory of the buying affiliate. The beginning inventory of Pinky includes P2,500 worth of merchandise acquired from Silk on which Silk reported a profit of P1,000 while the beginning inventory of Silk also includes P3,000 of merchandise acquired from Pinky at 35% mark- up. Using cost method, the following results of operations for 2018 are as follows: Pinky Company 198,000 60,000 Silk Company 75,000 10,000 Net income Dividends declared and paid 33. How much of the consolidated net income for 2018 is attributable to the…
Hogan Industries had the following inventory transactions occur during 2017: Units Cost/unit Feb. 1, 2017 Purchase 95 $40 Mar. 14, 2017 Purchase 164 $41 May 1, 2017 Purchase 116 $43 The company sold 269 units at $55 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO? (rounded to whole dollars)
Hogan Industries had the following inventory transactions occur during 2017: Units Cost/unit Feb. 1, 2017 Purchase 95 $ 40 Mar. 14, 2017 Purchase 164 $ 41 May 1, 2017 Purchase 116 $ 43 The company sold 269 units at $55 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO? (rounded to whole dollars) A. $10954 B. $3841 C. $3534 D. $11261
For the period from 2016 through 2016, the Charlie Company had net sales of $500,000 and a gross profit of $200,000. During the first quarter of 2018, the company made purchases of $19,500 and recorded sales of $47,500. The inventory value at the beginning of the year was 15,500. What is the estimated cost of Charlie's inventory on March 31, 2018, using the gross profit method?
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On January 1, 2017, Manuel Company's merchandise inventory was $300,000. During 2017, Manuel purchased $1,900,000 of merchandise and recorded sales of $2,000,000. The gross profit margin on these sales was 20% of the selling price. Required: 1. What is Manuel's merchandise inventory at December 31, 2017?
During 2017, Shamrock Inc. changed from LIFO to FIFO inventory pricing. Shamrock began operations in 2015 and its pretax income in 2016 and 2015 under LIFO was $ 440,000 and $ 522,000, respectively. Pretax income using FIFO pricing in the prior years would have been $ 474,000 in 2015 and $ 576,000 in 2016. In 2017, Shamrock reported pretax income using FIFO pricing of $ 539,000. Show comparative income statements for Shamrock beginning with "Income before income tax," as presented in the 2017 income statement. The tax rate for all years is 30%. 2017 2016 2015 Income before income tax $ Income tax Net Income $ %24 %24

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