Top Company Holds 90 Percent Of Bottom Company S Common Stock In The Current Yea 1

1. Top Company holds 90 percent of Bottom Company’s common stock. In the current year, Top reports sales of $826,000 and cost of goods sold of $619,500. For this same period, Bottom has sales of $371,000 and cost of goods sold of $222,600. During the current year, Bottom sold merchandise to Top for $178,000. The parent still possesses 20 percent of this inventory at the current year-end. Bottom had established the transfer price based on its normal gross profit rate. What are the consolidated sales and cost of goods sold?

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