Problem:
Bellgrade, Inc., acquired a 60 percent interest in Hansen Company several years ago. During 2012, Hansen sold inventory costing $213,750 to Bellgrade for $285,000. A total of 12 percent of this inventory was not sold to outsiders until 2013. During 2013, Hansen sold inventory costing $276,000 to Bellgrade for $345,000. A total of 25 percent of this inventory was not sold to outsiders until 2014. In 2013, Bellgrade reported cost of goods sold of $517,500 while Hansen reported $317,500.
Required:
Question: What is the consolidated cost of goods sold in 2013?
- $481,300.
- $487,750.
- $498,700.
- $843,700.
Note: Please answer in proper manner and show all computations