How Would Consolidated Cost of Goods Sold Have Differed If

question 11

Multiple Choice

How would consolidated cost of goods sold have differed if the inventory transfers had been for the same amount and cost, but from Stendall to Edgar?

• A) Consolidated cost of goods sold would have remained $2,140,000.
• B) Consolidated cost of goods sold would have been more than $2,140,000 because of the controlling interest in the subsidiary.
• C) Consolidated cost of goods sold would have been less than $2,140,000 because of the noncontrolling interest in the subsidiary.
• D) Consolidated cost of goods sold would have been more than $2,140,000 because of the noncontrolling interest in the subsidiary.
• E) The effect on consolidated cost of goods sold cannot be predicted from the information provided.

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