What is the group cost of sales for Pea Group for the year ended 31 December 20X9?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Pea acquired 75% of the equity shares of Hion on 31 August 20X9.

The statement of profit or loss extracts for the year ended 31 December 20X9 showed:

                                                           Pea                        Hion                           

Revenue                                           240,000                 148,800

Cost of sales                                      60,000                  38,400

During the post-acquisition period, sales of $6,000 were made by Pea to Hion. Half of these goods remained in the inventory at the year-end. Pole had made a mark-up on cost of 25% on these sales.

What is the group cost of sales for Pea Group for the year ended 31 December 20X9?

A. $133,400 B. $132,200 C. $83,400 D. $67,400

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