Webb co. acquired 100% of rand inc. on january 5, 2018. during 2018, webb sold goods to rand for $2,400,000 that cost webb $1,800,000. rand still owned 40% of the goods at the end of the year. cost of goods sold was $10,800,000 for webb and $6,400,000 for rand. what was consolidated cost of goods sold?

The correct answer to the following question is $ 15,040,000.

Explanation:

The given information -

Webb ( parent company ) cost for selling goods to Rand inc ( subsidiary ) -

$1800,000

Cost of goods sold for Webb - $10,80,000

Cost of goods sold for Rand is - $6400,000

Here Rand inc has 40% of the good left with them which cost -

$2400,000 - $1800,000

= $600,000 x 40%

= $240,000

The consolidated cost of good sold =

$ 10,80,000 + $6400,000 - $2400,000 + $240,000

=  $15,040,000

answer; communities of interest; i believe this is correct, plz check first good luck;

1. c

2. b

3. a

4. c

5. a

6. b

7. c

8. c

9.b

10. d

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