Problem
On 1 October 2021, Maix Ltd sold inventory for $75,000 to IKASIUAX Ltd at cost plus 25%. On 30 June 2022, IKASIUAX Ltd sold two-thirds of the inventory to other entities for $25,000 but still holds one-third of these inventories as of 30 June 2022.
• Prepare the journal entries for Intragroup's above transaction.
NOTE: IKASIUAX Ltd wholly owned subsidiary Maix LTD.
Below is my personal approach and I thought you may want to use them for this question.
2/3 of the inventory was sold but still, there is 1/3 inventory is held.
So the actual cost is $60k which is 75k with a 25 % markup. This means that the actual cost of this inventory is $60k and we sold 2/3 for $25k.