Bellgrade acquired 60% interest in Hansen. During 2012, Hansen sold inventory co
ID: 2351311 • Letter: B
Question
Bellgrade acquired 60% interest in Hansen. During 2012, Hansen sold inventory costing $75,000 to Bellgrade for $100,000. A total of 16% of this inventory was not sold to outsiders until 2013. During 2013, Hansen sold inventory costing $96,000 to Bellgrade for $120,000. A total of 35% of this inventory was not sold to outsiders until 2014. In 2013 Bellgrade reported cost of goods sold of $380,000 while Hansen reported $210,000. What is the consolidated cost of goods sold in 2013?
a. 465,600
b. 473,440
c. 474,400
d. $522,400
Explanation / Answer
c. 474,400