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.

---

Definitions:

Qi Gong

A holistic system of coordinated body posture and movement, breathing, and meditation used for health, spirituality, and martial arts training.

Conventional Medicine

A system of medicine based on the diagnosis and treatment of diseases using drugs, surgery, and other traditional methods.

Alternative Treatments

Therapeutic practices that are not part of mainstream medical care, often used alongside conventional treatments or when standard therapies have not been effective.

Fringe

Elements or groups considered to be on the margins or edge of mainstream society or a particular field.