Gargiulo Company, a 90% Owned Subsidiary of Posito Corporation, Sells

question 66

Multiple Choice

Gargiulo Company, a 90% owned subsidiary of Posito Corporation, sells inventory to Posito at a 25% profit on selling price. The following data are available pertaining to intra-entity purchases. Gargiulo was acquired on January 1, 2012. Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends.
For consolidation purposes, what amount would be debited to cost of goods sold for the 2014 consolidation worksheet with regard to the unrealized gross profit of the 2014 intra-entity transfer of merchandise?

• A) $600.
• B) $750.
• C) $3,760.
• D) $3,000.
• E) $675.

Grasp the concept of groupthink, its causes, and how it can be avoided.

Recognize the influence of conformity and the factors promoting it.

Explain the role of normative and informational social influence in shaping behavior.

Understand the mechanisms of resistance to social pressure, including asserting personal control and reacting against social norms.

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Definitions:

Indirect Labor

Describes labor costs associated with employees who do not directly work on a product, but whose services are necessary for the manufacturing process.

Work in Process

Inventory items that are in the process of being transformed from raw materials into finished goods but are not yet complete.

Overapplied Manufacturing Overhead

A situation where the allocated amount for manufacturing overhead costs exceeds the actual amount incurred.

Manufacturing Costs

Expenses incurred in the process of producing goods, including direct materials, direct labor, and both fixed and variable manufacturing overhead.