Business Combinations (F3) Flashcards
1
Q
Intercompany INventory
A
Sales 800,000 Markup 1.25 COGS = 800,000/1.25 = 640,000 Intercompany profit = 800 - 640 = 160 200,000 Ending Inventory = 200,000 / 800,000 = 25% 25% allocated to inventoy 75% to COGS
Dr IC Sales 800
Cr IC COGS 640
Cr COGS 120
Cr Inventory 40
