Rainy Afternoon Co. owns 80% interest in Sunny Morning Co. During 20x1, Rainy sold inventories costing ₱200,000 to Sunny for ₱300,000. One-fourth of the inventories were unsold as of December 31, 20x1 and were included in Sunny’s year-end statement of financial position at the purchase price from Rainy. The individual financial statements of Rainy and Sunny on December 31, 20x1 show the following information: Rainy Sunny Inventory 1,260,000 380,000
Rainy Afternoon Co. owns 80% interest in Sunny Morning Co. During 20x1, Rainy sold inventories costing ₱200,000 to Sunny for ₱300,000. One-fourth of the inventories were unsold as of December 31, 20x1 and were included in Sunny’s year-end
Rainy Sunny
Inventory 1,260,000 380,000
Sales 6,700,000 2,700,000
Cost of sales (3,015,000) (1,755,000)
Gross profit 3,685,000 945,000
There are no fair value adjustments arising from the business combination date.
How much is the consolidated sales?
Step by step
Solved in 2 steps
