
(a)
Introduction: The cost of goods sold refers to the cost of acquisition or manufacturing of goods that a company sells during a particular period. The cost of goods sold includes the cost of materials and labor used in the manufacturing and other associated costs.
The amount reported in the consolidated income statement as cost of goods sold
(b)
Introduction:
Consolidating entry to remove the effects of intercorporate sales
(c)
Introduction: The consolidated income is the difference between the sum of the total operating income of the parent company and the net income of the subsidiary and the unrealized inventory profits of the two. The income assigned to controlling interest is the difference between income assigned to non-controlling interest and the consolidated net income.
The amount reported as consolidated net income and income assigned to the controlling interest.

Want to see the full answer?
Check out a sample textbook solution
Chapter 6 Solutions
Advanced Financial Accounting
- Ivanhoe, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 20,400 Tri-Robos is as follows. Cost Direct materials ($51 per robot) $1,040,400 Direct labor ($39 per robot) 795,600 Variable overhead ($7 per robot) 142,800 Allocated fixed overhead ($29 per robot) 591,600 Total $2,570,400 Ivanhoe is approached by Tienh Inc., which offers to make Tri-Robo for $116 per unit or $2,366,400. Following are independent assumptions. Assume that none of the fixed overhead can be avoided. However, if the robots are purchased from Tienh Inc., Ivanhoe can use the released productive resources to generate additional income of $375,000. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Direct materials Direct labor Variable overhead Fixed overhead Opportunity cost Purchase price Totals Make…arrow_forwardcorrect answer pleasearrow_forwardcost accountingarrow_forward
- Summit Holdings has $280,000 in accounts receivable that will be collected within 70 days. The company needs cash urgently and decides to factor them, receiving $260,000. Skyline Factoring Company, which took the receivables, collected $275,000 after 85 days. Find the rate of return on this investment for Skyline.arrow_forwardwhat are the variable expenses per unit?arrow_forwardprice-earning ratio accounting questionarrow_forward
- Bright Electronics has a Computer Division with the following financial details: • Sales: $250,000 • Cost of Goods Sold: $120,000 Operating Expenses: $50,000 Average Invested Assets: $1,200,000 ⚫ Hurdle Rate: 12%arrow_forwardA business has a dividend payout ratio of 0.6, an expected growth rate of 4% per year, and investors require a 9% return on their investment. What should be the price-earnings ratio? a. 10x b. 12x c. 15x d. 6xarrow_forwardcomplete the journal entryarrow_forward
- Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning

