Problembellgrade inc acquired a 60 percent interest in, Ask an Expert

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Problem:

Bellgrade, Inc., acquired a 60 percent interest in Hansen Company several years ago. During 2012, Hansen sold inventory costing $213,750 to Bellgrade for $285,000. A total of 12 percent of this inventory was not sold to outsiders until 2013. During 2013, Hansen sold inventory costing $276,000 to Bellgrade for $345,000. A total of 25 percent of this inventory was not sold to outsiders until 2014. In 2013, Bellgrade reported cost of goods sold of $517,500 while Hansen reported $317,500.

Required:

Question: What is the consolidated cost of goods sold in 2013?

$481,300.
$487,750.
$498,700.
$843,700.

Note: Provide support for your rationale.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162942

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