Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to Salt for $90 each. Salt 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 Salt record in 20X8?
A. $2,765,000
B. $2,963,000
C. $1,422,000
D. $1,620,000
Answer: D
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Which of the following statements regarding vacation benefits is correct?
A) No entry is needed until the employee takes a paid vacation. B) The account, Vacation Expense is debited when the employee takes a paid vacation. C) Health and pension benefits are recorded in the same manner as vacation benefits. D) When an employee takes a paid vacation, the account, Vacation Benefits Payable is credited.
A company with a low inventory turnover requires a smaller investment in inventory than one producing the same sales with a higher turnover.
Answer the following statement true (T) or false (F)
The Electronics Division of Anton Company reports the following results for the current year: Revenues$490,000? Operating expenses$440,000? Operating income$50,000? Operating assets$600,000? Anton Company has set a target return on investment (ROI) of 12% for the Electronics Division. The Electronic Division's margin is:
A. 8.33%. B. 13.87%. C. 11.36%. D. 10.20%.
Crossland Corporation reported sales on its income statement of $435,000. On the statement of cash flows, which used the direct method, sales adjusted to a cash basis were $455,000. Crossland Corporation reported the following account balances on its balance sheet for the year: Ending BalanceBeginning BalanceAccounts receivable$30,000 ? Prepaid expenses$14,000 $11,000 Inventory$18,000 $20,000 Based on this information, the beginning balance in accounts receivable was:
A. $30,000 B. $40,000 C. $50,000 D. $20,000