Silver Corporation owns 80 percent of Billy Company's stock. At the end of 20X8, Silver and Billy reported the following partial operating results and inventory balances: Total sales Sales to Billy Company Inventory on hand O $830,600. O $775,800. Silver Corporation O $865,600. O $925,400. $735,000 $147,000 Billy Company $528,000 Silver regularly prices its products at cost plus a 40 percent markup for profit. Billy prices its sales at cost plus a 20 percent markup. The total sales reported by Silver include both intercompany sales and sales to nonaffiliates. What amount of cost of goods sold will be reported in the 20X8 consolidated income statement? (Hint: be sure to find the COGS amount reported separately by these two companies first!) $44,100

Silver Corporation owns 80 percent of Billy Company's stock. At the end of 20X8, Silver and Billy reported the following partial operating results and inventory balances: Total sales Sales to Billy Company Inventory on hand O $830,600. O $775,800. Silver Corporation O $865,600. O $925,400. $735,000 $147,000 Billy Company $528,000 Silver regularly prices its products at cost plus a 40 percent markup for profit. Billy prices its sales at cost plus a 20 percent markup. The total sales reported by Silver include both intercompany sales and sales to nonaffiliates. What amount of cost of goods sold will be reported in the 20X8 consolidated income statement? (Hint: be sure to find the COGS amount reported separately by these two companies first!) $44,100

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Sunland company provided the following information of its two products: Product A Product B $20 $90…

A: The lower of cost or market value rule is the concept used to report the value of inventory in the…

Q: During the year, TRC Corporation has the following inventory transactions.For the entire year, the…

A: Inventory valuation is a method of finding the actual cost of the goods left unsold at the end of a…

Q: Mignon Company’s Number of Days’ Sales in Inventory is 30 days (assume 360 days in a year). The…

A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…

Q: Com plc bought 500 items of inventory at the price of $20 per item on 1 January 20X2, and another…

A: The objective of the question is to calculate the profit under replacement cost accounting. The…

Q: Mac's Hardware's gross profit on sales is 40%. At the beginning of January, the cost of inventory…

Q: SLR Corporation has 900 units of each of its two products in its year-end inventory. Per unit data…

A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…

Q: ry (beginning) 16,000 Inventory (ending) 30,000 Operating Expenses 148,000 Income Tax Expense 10,000…

A: Given Sales = 500,000 Purchases = 225,000 Inventory (at the beginning of the year)=16,000 Inventory…

Q: Faust Company uses the perpetual inventory system. Faust sold goods that cost $6,200 for $10,400.…

A: The inventory purchases increase the assets and the cost of goods sold decreases the assets of the…

Q: Required: 1. Prepare comparative year-end income statements for the three inventory costing methods…

A: Periodic Inventory System: Under this system,entire stock is verified at a time at periodic…

Q: QP Corporated sold 5,470 units of its product at $45.30 per unit during the year and incurred…

A: Under the FIFO method, the oldest products in inventory are sold first. Under the LIFO method, the…

Q: if a compan ships goods at mark up 30% to its local branch which has 45,500 begining inventory, for…

A: Combined statements for overvaluation mentioned here mean the various adjustments that have been…

Q: a. Assume that the same 11,200 unit volume is maintained in 20XY, but the sales price increases by…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: Can you explain how do we get COGS and Inventory? Exe Ltd sold supplies to Whi Ltd with a total…

A: Lets understand the basics. When inter company sales of good happened between two entity of group…

Q: Concord Company's inventory records show the following data: Inventory: January 1 Purchases: June 18…

A: Periodic inventory system is used for valuation of the inventory, Under this method the inventory is…

Q: SMCC Retail Corp had the following info: Beg inventory @ cost = $400,000, @ retail =$790,000 Net…

A: In the given question, the ending inventory will be determined using the retail inventory method.…

Q: SLR Corporation has 3,000 units of each of its two products in its year-end inventory. Per unit data…

A: Inventory is an asset for the company. As the company invests money to purchase stock. The company…

Q: Whispering Winds Corporation uses a perpetual inventory system and had inventory worth $88,500 at…

A: Th balance in the inventory account or the ending inventory is the cost of goods which are not sold…

Q: Lindsey Corporation had the following account balances: Sales revenue $200,000 Beginning inventory…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Sunland company provided the following information of its two products: Product A Product B Cost $20…

A: The objective of the question is to calculate the carrying value of the company's inventory using…

Q: Old Oak Winery sold inventory for $260,000, terms 5/10, n/30. Cost of goods sold was $151,000. How…

A: Lets understand the basics. Seller in order to atrack early payment gives discount term to purchase.…

Q: Forest Company has five products in its inventory. Information about ending inventory follows. Unit…

A: Inventory valuation is the process followed by all the entities to value the ending inventory or…

Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Silver Corporation owns 80 percent of Billy Company's stock. At the end of 20X8, Silver and Billy reported the following partial operating results and inventory balances:
Total sales
Sales to Billy Company
Inventory on hand
O $830,600.
Silver Corporation
O $775,800.
O $865,600.
O $925,400.
$735,000
$147,000
Billy Company
$528,000
Silver regularly prices its products at cost plus a 40 percent markup for profit. Billy prices its sales at cost plus a 20 percent markup. The total sales reported by Silver include both
intercompany sales and sales to nonaffiliates. What amount of cost of goods sold will be reported in the 20X8 consolidated income statement? (Hint: be sure to find the COGS
amount reported separately by these two companies first!)
$44,100

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction of cost of goods sold

VIEW

Step 2: Computation of the cost of goods sold and unrealized profit

VIEW

Step 3: Computation of the cost of goods sold reported in the 20X8 consolidated income statement

VIEW

Solution

VIEW

Step by step

Solved in 4 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Traylor Corporation began the year with three items in beginning inventory, each costing $5. During the year Traylor purchased five more items at a cost of $6 each and then two more items at a cost of $7 each. Traylor sold eight items for $10 each. If Traylor uses a periodic LIFO system, what would be Traylor’s gross profit for this year? 45 $45 $80 $80 $51 $51 $36
SMCC Retail Corp had the following info: Beg inventory @ cost = $400,000, @ retail =$790,000 Net Purchases @ cost = $1,475,000, @ retail = $2,350,000 In addition, Mark-ups were $95,000 and Mark-up cancellations were $5,000. Mark-downs were $50,000 and Mark-down cancellations were $10,000. Net Sales were $2,250,000. REQUIRED: Compute Ending Inventory value using the retail inventory method
JC Manufacturing purchased inventory for $4,400 and also paid a $320 freight bill. JC Manufacturing returned 45% of the goods to the seller and later took a 1% purchase discount. Assume JC Manufacturing uses a perpetual inventory system. What is JC Manufacturing's final cost of the inventory that it kept? (Round your answer to the nearest whole number.) OA. $1,960 OB. $2,716 OC. $2,570 OD. $2,396
The following information is available for the McCartney Corporation: Sales $750,000Costs of goods sold $450,000Gross Profit $300,000Operating income $85,000Net income $42,000Inventory, beginning-year $71,200Inventory, end of year $48,800Calculate the company's inventory turnover and its days' sales in inventory.
Bijoux Company has sales of $40,000, beginning inventory of $5,000, purchases of $25,000, and ending inventory of $7,000. The cost of goods sold is: A) $23,000 B) $30,000 C) $40,000 D) $17,000
Sisyphus Inc. records total sales of $657,500 in the current period, with a cost of goods sold of $389,000 . Sisyphus expects 4% of sales to be returned. How much in net sales will Sisyphus recognize for the current period? Group of answer choices $373,400 $268,500 $631,200 $657,500 $257,760 The Sisyphus Inc’s (SSY) Company’s annual statement of cash flows reported the following (in millions): Net cash from financing activities $63,864 Net cash from investing activities -62,512 Cash at the beginning of the year 13,152 Cash at the end of the year 18,948 What did SSY report for “Net cash from operating activities” during the year? Group of answer choices $71,220 million cash inflow None of the above $4,444 million cash outflow $4,444 million cash inflow $71,220 million cash outflow
The home office ships merchandise to its branch at 20% above cost. The balance before closing in the Intra-company Inventory profit account is P132,000 and Shipments from Home Office amounted to P600,000.The cost of the branch beginning inventory is 60,000 128,000 160,000 192,000
SLR Corporation has 1,200 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows: Product 1 Product 2 Cost $ 54 $ 36 Selling price 80 38 Costs to sell 4 5 Determine the carrying value of SLR’s inventory assuming that the lower of cost or net realizable value (LCNRV) rule is applied to individual products. What is the before-tax income effect of the LCNRV adjustment? What is the before-tax income effect of the LCNRV adjustment?
Tefft Industires has an average inventory of $170,000, sells on term of 2/10, net 30, and its cost of sales is $540,000. What is Tefft's inventory conversion period? *show work* A) 85 days B) 115 days C) 105 days D) cannot be determined from the data given
[The following information applies to the questions displayed below.] Lewis Incorporated and Clark Enterprises report the following amounts for the year. Lewis Clark Inventory (beginning) $ 14,000 $ 40,000 Inventory (ending) 8,000 50,000 Purchases 120,000 150,000 Purchase returns 5,000 50,000 4. Which company appears to be managing its inventory more efficiently? multiple choice Lewis Incorporated Clark Enterprises
Ashavinbhai
Anthony Corporation reported the following amounts for the year: Net sales 296,000 Cost of goods sold 138,000 Average inventory 50,000 Anthony's gross profit ratio is: 53.4%. 51.9%. 50.3%. 46.6%. Anthony's average days in inventory is: 70 days. 114 days. 132 days. 151 days. A company's sales equal $60,000 and cost of goods sold equals $20,000. Its beginning inventory was $1,600 and its ending inventory is $2,400. The company's inventory turnover ratio equals: 5 times. 10 times. 20 times. 30 times. [Last question is in the picture attached]