Answered

Welcome to Westonci.ca, the place where your questions find answers from a community of knowledgeable experts. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

ABC Corporation owns 75 percent of XYZ Company's voting shares. During 20X8, ABC produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to XYZ for $90 each. XYZ sold 18,000 of the chairs to unaffiliated companies for $117 each prior to December 31, 20X8, and sold the remainder in early 20X9 to unaffiliated companies for $130 each. Both companies use perpetual inventory systems. Based on the information given above, what amount of cost of goods sold did ABC record in 20X8 prior to consolidation

Sagot :

abiolataiwo2015

Answer:

$2,765,000

Explanation:

Calculation to determine what amount of cost of goods sold did ABC record in 20X8 prior to consolidation

Cost of goods sold= $79 each* 35,000

Cost of goods sold=$2,765,000

Therefore the amount of cost of goods sold that ABC record in 20X8 prior to consolidation is $2,765,000

anthougo

Using the information given and assuming that ABC Corporation sells the chairs it produces to XYZ Company only, the cost of goods sold is $3,150,000.

Data and Calculations:

Shareholding of ABC Corporation in XYZ = 75%

ABC production units in 20X8 = 50,000 chairs

Number of units sold to XYZ = 35,000 chairs

Cost of product per unit = $90

Thus, if ABC Corporation sells the chairs it produces to XYZ Company only, the cost of goods sold is $3,150,000 ($90 x 35,000).

Learn more: https://brainly.com/question/18648409

We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.