70.2K

Verified Solution

Link Copied!

Ple Bakery owns 60 percent of Slice Products Company's stock. On January 1, 20x9, inventory reported by Ple included 27000 bags of flour purchased from Slice at $15 per bag, By December 31, 20X9, all the beginning inventory purchased from Slice Products had been baked into products and sold to customers by Ple. There were no transactions between Ple and Slice during 20X9. Both Ple Bakery and Slice Products price their sales at cost plus 50 percent markup for profit. Ple reported income from its baking operations of $312,000, and Slice reported net income of $262.000 for 20x9 Required: a. Compute the amount reported as cost of goods sold in the 20x9 consolidated income statement for the flour purchased from Slice in 20x8 (Do nor 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 31, 20X9. (Do not round intermediate calculations.) view transaction list Consolidation Worksheet Entries 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 31, 20X9. (Do not round intermediate calculations.) 0135 view transactions Consolidation Worksheet Entries > Record the consolidation entry to remove the effect of unrealized profit in beginning inventory Nottinter debts before credits Accounts Debat Credit Entry 1 Record entry Clear entry W consolidation entres Record entry Clear entry view consolidation entries Compute the amounts reported as consolidated net income and income assigned to the controlling interest in the 20x9 consolidated income statement. (Do not round Intermediate calculations.) Income assigned to controlling interest

Answer & Explanation Solved by verified expert

See Answer