P Inc. owns a 60% interest in S Corp. During 2020 S sold inventory costing $160,000 to P for $200,000. A total of 18 percent of this inventory was not sold to outsiders until 2021. During 2021 S sold inventory costing $297,500 to P for $350,000. A total of 30 percent of this inventory was not sold to outsiders until 2022. In 2021 P reported the cost of goods sold of $607,500 while S reported $450,000. What is the consolidated cost of goods sold in 2021?

P Inc. owns a 60% interest in S Corp. During 2020 S sold inventory costing $160,000 to P for $200,000. A total of 18 percent of this inventory was not sold to outsiders until 2021. During 2021 S sold inventory costing $297,500 to P for $350,000. A total of 30 percent of this inventory was not sold to outsiders until 2022. In 2021 P reported the cost of goods sold of $607,500 while S reported $450,000. What is the consolidated cost of goods sold in 2021?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 2RE: Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of...

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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.
In 2020, Silk sold Proform inventory costing $30,000 for $50,000. As of 12/31/20, Proform had resold only 28% of the inventory (72% of the gross profits associated with Silk's sale remained in inventory). In 2021, Proform purchased $80,000 of inventory from Silk, with Silk's cost for this inventory equaling $40,000. At the end of 2021, Proform held $28,000 of the Silk 2021 purchases in its inventory and none of the 2020 purchases. I need help figuring out the changes in deferred profit for 2020 and 2021.
PP Co. regularly sells merchandise to its 80%-owned subsidiary, SS Co. In 2021, PP sold merchandise to SS that cost P64,000 for P80,000. Half of the merchandise remained in the inventory of SS as of December 31, 2021. During 2022, PP sold merchandise that cost P100,000 to SS for P125,000. 60% of the 2022 inter company sale was resold to the customers of SS. Selected profit or loss items for 2022 are provided below: PP SS Sales P600,000 P300,000 Cost of sales 480,000 250,000 Operating expenses 40,000 20,000 How much is the consolidated cost of sales? A. 607,000 B. 603,000 C. 732,000 D. 853,000 How much is the consolidated net income attributable to the parent for 2022? A 102,000 B. None of the choices C. 108,000 D. 102,400 How much is the consolidated sales for 2022? A. 855,000 B. 800,000 C. 900,000 D. 775.000 How much is the consolidated net income…
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