Can someone help me understand the answer for this question:
"During Year 2, Company X (parent) purchased merchandise from Company Y (Sub) at an aggregate invoice price of $180,000, which included a 100% markup of Company Y's (Sub) cost. At December 31, Year 2, Company X (Parent) had $36,000 of this merchandise remaining in its inventory." Eliminate intercompany Sales.
Answer:
Sales $180,000
COGS 162,000
Inventory 18,000
Please explain to me how to eliminate COGS and inventory in a simplified way. Thank you
AUD 79 (EXPIRED) 86
BEC 69, 74, 75 (EXPIRED) 77
REG 84
FAR 74, 77
BEC 69, 74, 75 (EXPIRED) 77
REG 84
FAR 74, 77
