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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 Silver Corporation $735,000 Billy Company $147,000 $528,000 Sales to Billy Company Inventory on hand 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 Silver Corporation $735,000 Billy Company $147,000 $528,000 Sales to Billy Company Inventory on hand 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
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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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 Silver Corporation O $830,600. O $775,800. $865,600. O $925,400. $735,000 $147,000 Billy Company $528,000 $44,100 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: sure to find the COGS amount reported separately by these two companies first!)
Transcribed Image Text: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 Silver Corporation O $830,600. O $775,800. $865,600. O $925,400. $735,000 $147,000 Billy Company $528,000 $44,100 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: sure to find the COGS amount reported separately by these two companies first!)
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