Pie Bakery owns percent of Slice Products Company's stock. On January X inventory reported by Pie included bags of flour purchased from Slice at $ per bag. By December X all the beginning inventory purchased from Slice Products had been baked into products and sold to customers by Pie. There were no transactions between Pie and Slice during X
Both Pie Bakery and Slice Products price their sales at cost plus percent markup for profit. Pie reported income from its baking operations of $ and Slice reported net income of $ for
Required:
a Compute the amount reported as cost of goods sold in the X consolidated income statement for the flour purchased from Slice in X
Note: Do not round intermediate calculations.
Cost of goods sold
b Prepare the consolidation entry or entries required to remove the effects of the unrealized profit in beginning inventory in preparing the consolidation worksheet as of December
Note: Do not round intermediate calculations.
cCompute the amounts reported as consolidated net income and income assigned to the controlling interest in the x consolidated income statement.
Note: Do not round intermediate calculations.
