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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.?

  1. 4,000
  2. 92,000
  3. 96,000
  4. 5,000
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