Patient Company holds 60% of Speedy Company stock.Patient has sold inventory to Speedy Company as follows:Percentof SoldSalesInventoryCost toPrice toHeld atSpeedy$203,000 $355,000$208,000 $312,000$120,000 $150,000$150,000 $250,000YearPatientYear end201730%201840%201925%202040%The following balances were included in the individualfinancial statements of each company for the year ended12/31/2020:Speedy$ 5,500,000 3,800,000$ 3,570,000 2,300,000PatientSalesCost of goods soldMerch. inventory2$580,000380,000a. What will be reported as consolidated sales in the year 2020?b. What will be reported as consolidated inventory at 12/31/2020?c. What will be reported as consolidated cost of goods sold for 2020?d. Were the intra-entity sales of inventory items upstream ordownstream?

Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and specify the other subparts (up to 3) you’d like answered.As per the given question, Patient company holds 60% of Speedy company stock. Consolidated sales = $5,500,000 + 60% of $3,800,000 = $5,500,000 + $2,280,000 = $7,780,000 a. Thus, Consolidated sales to be reported in year 2020 is $7,780,000b. Calculation of unrealized profit Year Cost to Patient Company Sales to Speedy Total profit (Sales -Cost) Percentage of sold inventory held at year end Unrealized profit 1 2 3 4 = 3-2 5 6 = 4 x 5 2017 $203,000 $355,000 $152,000 30% $45,600 2018 $208,000 $312,000 $104,000 40% $41,600 2019 $120,000 $150,000 $30,000 25% $7,500 2020 $150,000 $250,000 $100,000 40% $40,000 Total $1,34,700 Consolidated inventory = $580,000 + $380,000 - Unrealized profit Consolidated inventory as on 12/31/2020 = $580,000 + $380,000 - $1,34,700 = $8,25,300c. Calculation of consolidated cost of goods sold for 2020 Consolidated cost of goods sold = $3,570,000 + 60% of $2,300,000 = $3,570,000 + $1380,000 = $4,950,000 Thus, consolidated cost of goods sold is $4,950,000

Business

Accounting

Patient Company holds 60% of Speedy Company stock. Patient has sold inventory to Speedy Company as follows: Percent of Sold Sales Inventory Cost to Price to Held at Year Speedy $203,000 $355,000 $208,000 $312,000 $120,000 $150,000 $150,000 $250,000 Patient Year end 2017 30% 2018 40% 2019 25% 2020 40% The following balances were included in the individual financial statements of each company for the year ended 12/31/2020: Patient Speedy $ 5,500,000 3,800,000 $ 3,570,000 2,300,000 380,000 Sales Cost of goods sold Merch. inventory 2$ 580,000 a. What will be reported as consolidated sales in the year 2020? b. What will be reported as consolidated inventory at 12/31/2020? c. What will be reported as consolidated cost of goods sold for 2020?

Patient Company holds 60% of Speedy Company stock. Patient has sold inventory to Speedy Company as follows: Percent of Sold Sales Inventory Cost to Price to Held at Year Speedy $203,000 $355,000 $208,000 $312,000 $120,000 $150,000 $150,000 $250,000 Patient Year end 2017 30% 2018 40% 2019 25% 2020 40% The following balances were included in the individual financial statements of each company for the year ended 12/31/2020: Patient Speedy $ 5,500,000 3,800,000 $ 3,570,000 2,300,000 380,000 Sales Cost of goods sold Merch. inventory 2$ 580,000 a. What will be reported as consolidated sales in the year 2020? b. What will be reported as consolidated inventory at 12/31/2020? c. What will be reported as consolidated cost of goods sold for 2020?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Esquire Incorporated uses the LIFO method to report its inventory. Inventory at the beginning of the year was $700,000 (28,000 units at $25 each). During the year, 96,000 units were purchased, all at the same price of $32 per unit. 98,000 units were sold during the year. Assuming an income tax rate of 25%, what is LIFO liquidation profit or loss that the company would report in a disclosure note accompanying its financial statements? LIFO liquidation profit (loss)
Delta Apparel Inc. uses a perpetual inventory system. At the beginning of the year inventory amounted to $ 50,000. During the year, the company purchased merchandise for $ 230,000 and sold merchandise costing $ 245,000. A physical inventory taken at year-end indicated shrinkage losses of $4,000. Prior to the recording of these shrinkage losses, the year-end balance in the companys Inventory account was :- a. $ 31,000 b. $ 35,000 c. $ 50,000 d. $ 55,00
Marigold Corporation uses a perpetual inventory system and had inventory worth $73,500 at the beginning of the year. Purchases were made during the year for $323,000; however, 10% of these goods were returned to the supplier, and a 3% discount was taken on the remaining balance owing. Marigold paid $2,500 cash for freight to ship the inventory to its location during the year. Marigold reported cost of goods sold for the year of $245,000. Marigold has a calendar year end. What is the balance in the inventory account at the end of the year? Balance $
At the beginning of 2021, Calston Incorporated reports inventory of $9,000. During 2021, the company purchases additional inventory for $25,000. At the end of 2021, the cost of inventory remaining is $8,000. Calculate cost of goods sold for 2021. $
Esquire Incorporated uses the LIFO method to report its inventory. Inventory at the beginning of the year was $552,000 (23,000 units at $24 each). During the year, 86,000 units were purchased, all at the same price of $28 per unit. 88,000 units were sold during the year. Assuming an income tax rate of 25%, what is LIFO liquidation profit or loss that the company would report in a disclosure note accompanying its financial statements? LIFO liquidation profit (loss)
Alpesh
In its 2019 annual report, Kingbird, Inc. reported inventory of $ 626 million on January 31, 2020, and $ 540 million on January 31, 2019, cost of goods sold of $ 5,746 million for the year, and net sales of $ 7,184 million for the year. Compute Kingbird's inventory turnover for the fiscal year 2019. (Round answer to 2 decimal places, e.g. 7.62.) Inventory turnover times Compute Kingbird's average days to sell inventory for the fiscal year 2019. (Round answer to 2 decimal place, e.g. 7.65. Use 365 days for calculation.) Average days to sell inventory days
Coney Island Inc. had the following operating transactions during January 2020, its first month of operations. Date Transaction 1/1 Purchased 2 units of inventory costing $4 each on credit 1/3 Purchased 3 units of inventory costing $5 each on credit 1/10 Purchased 4 units of inventory costing $6 each on credit 1/21 Paid for the January 1 purchase 1/23 Paid for the January 3 purchase 1/30 Sold 7 units of inventory at $10 each on credit 1/30 Matched the inventory cost to January 30 on a FIFO basis 1/31 Estimated that 10% of credit sales will not be realized in cash Record the above transactions in Coney Island’s journal Present Coney’s income statement through gross profit for January 2020
During the year, TRC Corporation has the following inventory transactions. Date Jan. 1 Beginning inventory Apr. 7 Purchase Jul.16 Purchase Oct. 6 Purchase Weighted Average Cost Total Beginning Inventory Purchases: Apr 07 Jul 16 Oct 06 Transaction Sales revenue Gross profit For the entire year, the company sells 450 units of inventory for $70 each. 3. Using weighted-average cost, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. (Round "Average Cost per unit" to 2 decimal places and all other answers to the nearest whole number.) Number of Units 60 140 210 120 530 Cost of Goods Available for Sale # of units 60 140 210 120 530 Average Cost per unit Cost of Goods Available for Sale $ $ Unit Cost 3,120 $ 52 54 57 58 7,560 11,970 6.960 29,610 Total Cost $ 3,120 7,560 11,970 6,960 $29,610 Cost of Goods Sold - Weighted Average Cost of units Sold Average Cost of Cost per Unit Goods Sold Ending Inventory - Weighted Average Cost # of units in Ending Inventory…
Condensed income statements for Jennifer Corporation are shown below for two years. Sales Cost of Goods Sold Gross Profit Operating Expense Net Income 2021 $90,000 54,000 $36,000 18,000 $18,000 Corrected net income Compute the corrected net income for 2021 and 2022 assuming that the inventory at the end of 2021 was mistakenly overstated by $6,000. 2021 2022 $108,000 64,800 $43,200 18,000 $25,200 S 2022 S