Question

Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2017, Skybox sold inventory costing $213,750 to Parkette for $285,000. A total of 12 percent of this inventory was not sold to outsiders until 2018. During 2018, Skybox sold inventory costing $276,000 to Parkette for $345,000. A total of 25 percent of this inventory was not sold to outsiders until 2019. In 2018, Parkette reported cost of goods sold of $517,500 while Skybox reported $317,500. What is the consolidated cost of goods sold in 2018?

• $843,700.

• $487,750.

• $498,700.

• $481,300.

Answer 1

Given that:

Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago.