question archive Pink Corporation owns 80 percent of Sink Company's voting shares
Pink Corporation owns 80 percent of Sink Company's voting shares
Subject:AccountingPrice:2.87 Bought7
Pink Corporation owns 80 percent of Sink Company's voting shares. During 20X4, Pink produced 60,000 smart phones at a cost of $62 each and sold 45,000 smart phones to Sink for $93 each. Sink sold 26,000 of the smart phones to unaffiliated companies for $128 each prior to December 31, 20X4, and sold the remainder in early 20x5 to unaffiliated companies for $133 each. Both companies use the perpetual inventory systems
Based on the information given above, what amount of cost of goods sold did Pink record in 20X4? Multiple Choice
$1612,000
$2,418,000
$2.790.000
$3,596.000
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Answer:
| Smart phones sold by Pink | 45000 |
| X Cost per unit sold | 62 |
| Cost of goods sold recorded by Pink in 20X4 | 2790000 |
| Option C $2,790,000 is correct |
