Part A:
Marks owns of Spencer. Before consolidation, Marks reports sales of and COGS of Spencer reports sales of $ and COGS of $
During the current year, Spencer sells inventory for $ above cost to Marks. At yearend, Marks has half of this inventory remaining.
Part B:
Fancy owns of Feast. Before consolidation, Fancy reports sales of $ and COGS of $ Feast reports sales of $ and COGS of $
During the current year, Fancy sells inventory costing $ to Feast for $ At year end, Feast has resold all but $ of this inventory.
Please answer the following for both Part A and Part B: these two parts are independent of each other!
What is the consolidated sales number for the year
What is the consolidated COGS number for the year
Is there an adjustment to consolidated inventory at yearend, and if so how much?
Will there be any adjustments on the parent's standalone books related to this transaction for income from sub? If so how much?
