Planner Corporation owns 70 percent of Schedule Company's voting shares. During 20X3, Planner produced 27,000 computer desks at a cost of $96 each and sold 12,000 of them to Schedule for $108 each. Schedule sold 8,000 of the desks to unaffiliated companies for $132 each prior to December 31, 20X3, and sold the remainder in early 20X4 for $142 each. Both companies use perpetual inventory systems. Required: a. What amounts of cost of goods sold did Planner and Schedule record in 20X3? Cost of Goods Sold Planner Corporation Schedule Company b. What amount of cost of goods sold must be reported in the consolidated Income statement for 20X3? (Do not round intermediate calculations.) Cost of goods sold
Planner Corporation owns 70 percent of Schedule Company's voting shares. During 20X3, Planner produced 27,000 computer desks at a cost of $96 each and sold 12,000 of them to Schedule for $108 each. Schedule sold 8,000 of the desks to unaffiliated companies for $132 each prior to December 31, 20X3, and sold the remainder in early 20X4 for $142 each. Both companies use perpetual inventory systems. Required: a. What amounts of cost of goods sold did Planner and Schedule record in 20X3? Cost of Goods Sold Planner Corporation Schedule Company b. What amount of cost of goods sold must be reported in the consolidated Income statement for 20X3? (Do not round intermediate calculations.) Cost of goods sold
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing
Section: Chapter Questions
Problem 19E
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