ACCA F3 Consolidated Revenue 4

Spring Co has held 75% of the equity share capital of Summer Co for many years. Cost of Sales for each entity for the year ended 31 December 2014 was as follows:

	Spring Co	Summer Co
	$	$
Cost of sales	125,600	675,000

During the year Spring Co sold goods costing $9,000 to Summer Co for $12,000. At the year end, all these goods remained in inventory.

What figure should be shown as cost of sales in the consolidated statement of profit or loss of the Spring group for the year ended 31 December 2014?

Suggested solutions:

	Spring Co	Summer Co	Conso	Remarks
	$	$	$
Cost of sales	125,600	675,000	791,600	(9,000)

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