How do unrealized intercompany inventory profits from a prior period affect the computation of consolidated net income when the inventory is resold in the current period? Is it important to know if the sale was upstream or downstream? Why or why not? Explain.© BrainMass Inc. brainmass.com October 25, 2018, 8:41 am ad1c9bdddf
Unrealized inter-company inventory profits are deferred until the inventory is sold to outside of the consolidated group. This is usually in the period following the deferred gross profit entry and so unrealized profits from a prior period usually result in the ...
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Inventory: Planter's 2010 Annual Report
See attached sheet. Help with problem 5-4a please.
Before releasing the 2010 annual report, Planter's controller learns that the inventory of one of the stores (amounting to $500,000) was counted twice in the December 31, 2009, inventory. The inventory was correctly counted in the December 31, 2010, inventory.
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