Panel Corp. owns 75% of the voting ordinary shares of Saturated Corp. acquired at book value during 2021. Selected information from the accounts of Pan and Sat for 2022 are as follows: P Corp. S Corp. Sales P900,000 P500,000 Cost of sales 490,000 190,000 During 2022, Panel sold merchandise to Saturated for P50,000 at a gross profit of P24,000. Half of this merchandise remained in Saturated Corp's inventory at December 31, 2022. Saturated Corp's December 31, 2021 inventories included unrealized profit of P4,000 on goods acquired from Pan. Determine the consolidated cost of sales.

Panel Corp. owns 75% of the voting ordinary shares of Saturated Corp. acquired at book value during 2021. Selected information from the accounts of Pan and Sat for 2022 are as follows: P Corp. S Corp. Sales P900,000 P500,000 Cost of sales 490,000 190,000 During 2022, Panel sold merchandise to Saturated for P50,000 at a gross profit of P24,000. Half of this merchandise remained in Saturated Corp's inventory at December 31, 2022. Saturated Corp's December 31, 2021 inventories included unrealized profit of P4,000 on goods acquired from Pan. Determine the consolidated cost of sales.

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 14RE

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