The following extracts relate to Pan and its wholly owned subsidiary Skillet: Pan Skillet Statement of...

The following extracts relate to Pan and its wholly owned subsidiary Skillet:

	Pan	Skillet
Statement of Financial Performance
Revenue	1,196,000	928,000
Cost of sales	888,000	670,000

Statement of Financial Position
Inventory	168,000	36,000

During the year the following transactions took place:

Pan’s sales to Skillet this year $20,000.
60% of these sales are still in inventory at balance date.
Pan makes 10% profit on sales (i.e., profit = 10% of the given sales figure)..
Profit in opening inventory on sales from Pan to Skillet in previous year $500.

The consolidated cost of sales figure is?

Select one:

a. 1,577,300

b. 1,577,300

c. 1,538,700

d. 1,558,000

e. 1,539,700

f. 1,539,200

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Expert Solution

ekkarill92 answered 1 year ago

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