I need this question general Accounting 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: To compute the consolidated cost of goods sold (COGS) for P Company and its subsidiary S for…

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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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.
consolidate sales revenue
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