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kirill115 [55]
3 years ago
10

Blue Company purchased 60 percent ownership of Kelly Corporation in 20X1. On May 10, 20X2, Kelly purchased inventory from Blue f

or $60,000. Kelly sold all of the inventory to an unaffiliated company for $86,000 on November 10, 20X2. Blue produced the inventory sold to Kelly for $47,000. The companies had no other transactions during 20X2.
1. What amount of sales will be reported in the 20X2 consolidated income statement?
a. $51,600
b. $60,000
c. $86,000
d. $146,000
2. What amount of cost of goods sold will be reported in the 20X2 consolidated income statement?
a. $36,000
b. $47,000
c. $60,000
d. $107,000
3. What amount will be reported as consolidated net income for 20X2?
a. $13,000
b. $26,000
c. $28,600
d. $39,000
Business
1 answer:
aleksandr82 [10.1K]3 years ago
3 0

Answer:

Blue Company

Consolidation of Parent & Subsidiary Companies :

1. c. $86,000

2. b. $47,000

3. d. $39,000

Explanation:

In preparing a consolidated income statement, Blue Company with controlling interest of 60% will eliminate intercompany transactions, sales, purchases, inventory, and profits.  This is because such transactions are assumed to be within the same consolidated entity.

Only such transactions involving outsiders are taken into consideration for the purpose of determining profits and arriving at the financial position of the consolidated group.

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During the current year, the Jules Company incurred the following product costs:Direct materials used in production $250,000Dire
ICE Princess25 [194]

Answer:

Option (D) is correct.

Explanation:

Given that,

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Ending Work in Process Inventory = $30,000

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A cylindrical can that has a capacity of 20 m3 will be made. The metal used to build the top costs $10 per square meter while th
Alchen [17]

The dimensions of the cylinder can be used to minimise cost of manufacture.

<h3>How to we find minimised cost?</h3>

Let's ignore the metal's thickness and assume that the material cost to manufacture is precisely proportionate to the surface area of a perfect cylinder.

A=2πr(r+h)

Given that V=1000=r2h and h=1000=r2, we can write

A=2πr(r+1000πr2)

A=2πr2+2000r−1

By setting the derivative to zero, we may determine the value of r that minimises A:

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r=5.419 + cm

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Can surface area (cm2) versus. radius (cm), where capacity = 1000cm 3.

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Answer:

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Explanation:

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Thus the higher wages received by the college graduates is mainly due to the working condition and the responsibilities that they are going take while working in an organization when compared to their sub-ordinates.

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