Shark Company purchased inventory from Dolphin Corporation for P120,000 on October 4, 2020, and resold 80% to outsider before end of the year, for P140,000. Dove manufactured the inventory sold to Shark for the following costs: Direct materials -P40,000, Direct labor -P20,000, Overhead-applied at 75% of direct labor costs. Shark owns 70% of Dolphin. Assume that there are no other transactions occur during 2020.

Shark Company purchased inventory from Dolphin Corporation for P120,000 on October 4, 2020, and resold 80% to outsider before end of the year, for P140,000. Dove manufactured the inventory sold to Shark for the following costs: Direct materials -P40,000, Direct labor -P20,000, Overhead-applied at 75% of direct labor costs. Shark owns 70% of Dolphin. Assume that there are no other transactions occur during 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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