Included in the Amounts for Skillet's Sales Were Intra-Entity Gross

question 46

Multiple Choice

Included in the amounts for Skillet's sales were intra-entity gross profits related to Skillet's intra-entity transfer of merchandise to Pot for $140,000.There were no intra-entity transfers from Pot to Skillet.Intra-entity transfers had the same markup as sales to outsiders.Pot still had 40% of the intra-entity gross profit remaining in ending inventory at the end of 2018.What are consolidated sales and cost of goods sold for 2018?

• A) $1,400,000 and $ 952,000.
• B) $1,400,000 and $ 966,000.
• C) $1,540,000 and $1,078,000.
• D) $1,400,000 and $ 974,400.
• E) $1,540,000 and $1,092,000.

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Definitions:

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