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Consolidated Cost of Goods Sold

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Mink Co. purchased Norton Inc. on January 5, 2008. During 2008, Mink sold Norton $400,000 worth of goods which cost $250,000. Norton still owned thirty percent of the goods at the end of the year. Cost of goods sold was $1,950,000 for Mink and $1,080,000 for Norton. What is the consolidated cost of goods sold on December 31, 2008?

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Solution Summary

The solution computes consolidated cost of goods sold for Mink Co. which has purchased Norton Inc. The consolidated cost of goods is determined.

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Balance goods on 31 December 2008 = 30% of 400,000 = $120,000

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