Compute noncontrolling interest and consolidated cost of sales (upstream sales)
Income statement information for 2011 for Pug Corporation and its 60 percent owned subsidiary, Sev Corporation, is as follows:
|
Pug |
Sev |
|
|
Sales |
$900 |
$350 |
|
Cost of sales |
400 |
250 |
|
Gross profit |
500 |
100 |
|
Operating expenses |
250 |
50 |
|
Sev’s net income |
$ 50 |
|
|
Pug’s separate income |
$250 |
Intercompany sales for 2011 are upstream (from Sev to Pug) and total $100,000. Pug’s December 31, 2010, and December 31, 2011, inventories contain unrealized profits of $5,000 and $10,000, respectively.
REQUIRED
1. Compute noncontrolling interest share for 2011.
2. Compute consolidated sales, cost of sales, and total consolidated income for 2011.