consolidation

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meibaker
meibaker Registered Posts: 481 Dedicated contributor 🦉
in AAT Level 3 (Level 6 in Scotland)
please someone help me.
A division made sale of 10 to B division, the sales were made at cost price and are included in B's direct costs for the month, this transaction should be excluded from the following table showing the result for the company as whole.
A division has sale of 772, and direct cost of 442
b division has sale of 240 and direct cost of 121,
so what's the sales and direct cost as a whole company?
sale= 772+240+10 direct cost =442+121-10
is that right?

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  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
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    the answer should be

    Consolidated Sales = 772 + 240 MINUS 10 = 1002 ( Not plus 10)
    Consolidated Direct costs (Purchases) = 442 + 121 - 10 = 553 (Correct)
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
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    meibaker wrote: »
    please someone help me.
    A division made sale of 10 to B division, the sales were made at cost price and are included in B's direct costs for the month, this transaction should be excluded from the following table showing the result for the company as whole.
    A division has sale of 772, and direct cost of 442
    b division has sale of 240 and direct cost of 121,
    so what's the sales and direct cost as a whole company?
    sale= 772+240+10 direct cost =442+121-10
    is that right?

    thanks very much!

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