question archive Problem 2 Sabindo Berhad is a 100% owned subsidiary of Lintas Berhad
Problem 2 Sabindo Berhad is a 100% owned subsidiary of Lintas Berhad
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Problem 2 Sabindo Berhad is a 100% owned subsidiary of Lintas Berhad. During 2018, Lintas sold inventory costing RM500,000 to Sabindo for RM750,000. Sabindo Berhad had sold all of these goods to outsiders as of December 31, 2018. During 2018, Lintas Berhad reported sales of RM2,250,000 and cost of goods sold of RM1,500,000, while Sabindo Berhad reported sales of RM1,200,000 and cost of goods sold of RM1,000,000. Required: Determine the 2018 consolidated gross profit.
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| Statement showing computation' | |
| Particulars | Amount |
| Lintas | |
| Sales | 2250000 |
| Less: Cost of goods sold | 1500000 |
| Gross Profit | 750000 |
| Less: Gross profit on sale to Sabindo (750000-500000) | 250000 |
| Gross profit of Lintas (A) | 500000 |
| Sabindo | |
| Sales | 1200000 |
| Less: Cost of goods sold | 1000000 |
| Gross Profit of Sabindo (B) | 200000 |
| Total Gross Profit (A+B) | 700000 |
