Bisharp Corporation owns 80% of Rufflet, Inc. common stock. During 20A, Bisharp sold to Rufflet inventory of P250,000 on the same terms as sales made to third parties. Rufflet sold all of the inventory purchased from Bisharp in 20A. The following information pertains to Bisharp and Rufflet's sales for 20A, respectively: Sales P1,000,000 and P700,000; Cost of merchandise sold P400,000 and P350,000. What amount should Bisharp report as cost of merchandise sold in its 20A consolidated income statement?
Bisharp Corporation owns 80% of Rufflet, Inc. common stock. During 20A, Bisharp sold to Rufflet inventory of P250,000 on the same terms as sales made to third parties. Rufflet sold all of the inventory purchased from Bisharp in 20A. The following information pertains to Bisharp and Rufflet's sales for 20A, respectively: Sales P1,000,000 and P700,000; Cost of merchandise sold P400,000 and P350,000. What amount should Bisharp report as cost of merchandise sold in its 20A consolidated income statement?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bisharp Corporation owns 80% of Rufflet, Inc. common stock. During 20A, Bisharp sold to Rufflet inventory of P250,000 on the same terms as sales made to third parties. Rufflet sold all of the inventory purchased from Bisharp in 20A. The following information pertains to Bisharp and Rufflet's sales for 20A, respectively: Sales P1,000,000 and P700,000; Cost of merchandise sold P400,000 and P350,000. What amount should Bisharp report as cost of merchandise sold in its 20A consolidated income statement?
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