Selected information from the separate and consolidated income statements of Poster Corporation and its subsidiary, Sign company for the year ended December 31, 20x2 are as follows: Poster Corp Sign Co. Consolidated Sales P 600,000 P420,000 P924,000 Cost of Goods Sold 450,000 335,000 693,000 Gross Profit P150,000 P85,000 P 231,000
21. Selected information from the separate and consolidated income statements of Poster Corporation and its subsidiary, Sign company for the year ended December 31, 20x2 are as follows:
Poster Corp Sign Co. Consolidated
Sales P 600,000 P420,000 P924,000
Cost of Goods Sold 450,000 335,000 693,000
Gross Profit P150,000 P85,000 P 231,000
During 2025, Poster Corporation sold goods to Sign Company at the same mark-up on cost that Poster uses for all sales. At December 31, 20x2, Sign had not paid all of these goods and still held 25% of them in inventory.
What is the original cost of goods in Sign’s inventory acquired from Poster Corp.?
- 4,000
- 92,000
- 96,000
- 5,000
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