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Question
Sub Company is a 100% owned subsidiary of Parent Corporation. During 2012, Parent sold inventory costing $500,000 to Sub for $750,000. Sub Company still had $150,000 (at transfer price) of the inventory on hand as of December 31, 2012. During 2012, Parent Company reported sales of $2,250,000 and cost of goods sold of $1,500,000, while Sub Company reported sales of $1,200,000 and cost of goods sold of $1,000,000.
Required:
Determine the 2012 consolidated gross profit.
Answer
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Related questions
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