Answer:
Consolidated sales $1,400,000
Consolidated cost of goods sold $966,000
Explanation:
The consolidated sales and cost of sales of the Pot Group shall be determined through the following mentioned method:
Pot Co Skillet Co Consolidated Figures
Sales $1,120,000 $420,000 $1,540,000
Less:Intra group sales ($140,000)
Consolidated sales $1,400,000
Cost of sales $840,000 $252,000 $1,092,000
Less:Intra group cost of sales ($140,000)
Add:Unrealized profit on intra group sales $14,000
(140,000*40%*25%)
Consolidated cost of goods sold $966,000
