REFERENCE: Ref.05_01 Pot Co.holds 90% of the Common Stock of Skillet Co.During

question 107

Multiple Choice

REFERENCE: Ref.05_01
Pot Co.holds 90% of the common stock of Skillet Co.During 2009,Pot reported sales of $1,120,000 and cost of goods sold of $840,000.For this same period,Skillet had sales of $420,000 and cost of goods sold of $252,000.Also during 2009,Pot sold merchandise to Skillet for $140,000.The subsidiary still possesses 40% of this inventory at the end of 2009.Pot had established the transfer price based on its normal markup.
-Assuming that the transfers were from Skillet Co.to Pot Co. ,what are consolidated sales and cost of goods sold?

• 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:

Gender Typing

The process by which society and culture ascribe particular roles, behaviors, or attributes to individuals based on their perceived sex.

Third-sex Category

A concept in some cultures for individuals who do not fit within the traditional binary genders of male and female, recognizing a separate unique gender identity.

Anthropologists

Scientists who study human behavior, cultures, societies, and biological traits, past and present.

American Indian

The indigenous peoples of the United States, also known as Native Americans, recognized for their diverse cultures and history.