MC Qu The financial statements of Post...
The financial statements of Post Company and Stamp Company on December Year were as follows:
Additional Information
Post owns percent of Stamp and carries its investment in Stamp on its books by the cost method.
During Year Post sold Stamp $ worth of merchandise, of which $ was resold by Stamp in the yearing Year
had sales of $ to Stamp, of which percent was resold by Stamp. Intercompany sales are priced to provide Post with a gross
profit of percent of the sales price.
On December Year Post had in its inventories $ of merchandise purchased from Stamp during Year On December
Year Post had in its ending inventories $ of merchandise that had resulted from purchases of $ from Stamp during
Year Intercompany sales are priced to provide Stamp with a gross profit of percent of the sale price.
Both companies are taxed at percent
Refer to Question What is the total adjustment to consolidated cost of goods sold for intercompany sales for Year and unrealized
profits in ending inventory on December Year
A$
B$
