Pine Company holds 60% of Spruce Company stock. Pine has sold inventory to Spruce Company as follows: year Cost to Pine Sales price to spruce Percen of Sold Held at Year Pine Spruce Year end 2017 $193,000 $347,000 30% 2018 $206,000 $310,000 20% 2019 $360,000 $450,000 25% 2020 $150,000 $250,000 30% The following balances were included in the individual financial statements of each company for the year ended 12/31/2020: Pine Co. Spruce Sales $ 5,100,000 3,900,000 Cost of goods sold $ 3,570,000 2,400,000 Merchandise inventory $ 580,000 390,000 consilidated inventory is 940,000 c. What will be reported as consolidated cost of goods sold for 2020?
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Pine Company holds 60% of Spruce Company stock.
Pine has sold inventory to Spruce Company as follows:
year Cost to Pine Sales price to spruce Percen of Sold Held at Year Pine Spruce Year end
2017 $193,000 $347,000 30%
2018 $206,000 $310,000 20%
2019 $360,000 $450,000 25%
2020 $150,000 $250,000 30%
The following balances were included in the individual financial statements of each company for the year ended 12/31/2020:
Pine Co. Spruce
Sales $ 5,100,000 3,900,000
Cost of goods sold $ 3,570,000 2,400,000
Merchandise inventory $ 580,000 390,000
consilidated inventory is 940,000
c. What will be reported as consolidated cost of goods sold for 2020?
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