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    Inter-Company Sale

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    JULLIE CARMELLE H. CHATTO
    Orion Co. owns 75% of Sanitarium Co. During the year, Orion sold goods worth P12,000 to Sanitarium, which Sanitarium marked up 25% and held half in inventory. Sanitarium also sold goods worth P60,000 to Orion, marked up 20%, of which Orion sold 3/4. Based on their individual financial statements, the question requires calculating their consolidated sales, cost of sales, and ending inventory.

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    Inter-Company Sale

    Uploaded by

    JULLIE CARMELLE H. CHATTO
    308 views1 page
    Orion Co. owns 75% of Sanitarium Co. During the year, Orion sold goods worth P12,000 to Sanitarium, which Sanitarium marked up 25% and held half in inventory. Sanitarium also sold goods worth P60,000 to Orion, marked up 20%, of which Orion sold 3/4. Based on their individual financial statements, the question requires calculating their consolidated sales, cost of sales, and ending inventory.

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    inter-company sale

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    Orion Co. owns 75% of Sanitarium Co. During the year, Orion sold goods worth P12,000 to Sanitarium, which Sanitarium marked up 25% and held half in inventory. Sanitarium also sold goods worth P60,000 to Orion, marked up 20%, of which Orion sold 3/4. Based on their individual financial statements, the question requires calculating their consolidated sales, cost of sales, and ending inventory.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    308 views1 page

    Inter-Company Sale

    Uploaded by

    JULLIE CARMELLE H. CHATTO
    Orion Co. owns 75% of Sanitarium Co. During the year, Orion sold goods worth P12,000 to Sanitarium, which Sanitarium marked up 25% and held half in inventory. Sanitarium also sold goods worth P60,000 to Orion, marked up 20%, of which Orion sold 3/4. Based on their individual financial statements, the question requires calculating their consolidated sales, cost of sales, and ending inventory.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Problem 1

    Orion Co. owns 75% interest in Sanitarium Co. The following transactions occurred during the year:

    a. Orion Co. sold goods costing P12,000 to Sanitarium Co. the goods were marked-up at 25% on
    selling price. Sanitarium Co. held half of these goods in its ending inventory.
    b. Sanitarium Co. sold goods to Orion Co. for P60,000. The goods were marked-up at 20% on cost.
    Orion Co. sold ¾ of these goods to unrelated parties during the year.
    The individual statements of profit and loss of the entities during the year show the following
    information:

    Orion Co. Sanitarium Co.


    Sales 1,000,000 700,000
    Cost of sales (400,000) (350,000)
    Gross profit 600,000 350,000

    The entities held the following inventories at year-end:


    Orion Co. Sanitarium Co.
    Ending inventory 300,000 80,000
    Requirements:
    a. Consolidated sales
    b. Consolidated cost of sales
    c. Consolidated ending inventory

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