The Consolidated cost of sales for 2020:a.) 280,000b.) 277,500c.) 272,500d.) 275,000 Income statement information for the year 2020 for Perena Corporation and its 60% ownedsubsidiary, Amihan Corporation is as follows:AmihanP175,000125,000P 50,000PerenaSales .P450,000200,000P250,000Cost of SalesGross profit .Operating expensesAmihan's net income.125,00025,000P 25,000Perena's separate income. P125,000Intercompany sales for 2020 are upstream (from Amihan to Perena) and total P50,000. Perena'sDecember 31, 2019 and December 31, 2020 inventories contain unrealized profits of P2,500 andP5,000 respectively.The Consolidated cost of sales for 2020:

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The Consolidated cost of sales for 2020: a.) 280,000 b.) 277,500 c.) 272,500 d.) 275,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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

The Consolidated cost of sales for 2020:

a.) 280,000

b.) 277,500

c.) 272,500

d.) 275,000

Income statement information for the year 2020 for Perena Corporation and its 60% owned
subsidiary, Amihan Corporation is as follows:
Amihan
P175,000
125,000
P 50,000
Perena
Sales .
P450,000
200,000
P250,000
Cost of Sales
Gross profit .
Operating expenses
Amihan's net income.
125,000
25,000
P 25,000
Perena's separate income
. P125,000
Intercompany sales for 2020 are upstream (from Amihan to Perena) and total P50,000. Perena's
December 31, 2019 and December 31, 2020 inventories contain unrealized profits of P2,500 and
P5,000 respectively.
The Consolidated cost of sales for 2020:

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