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PollmanShells Sales$1,500,000$500,000Cost of Goods Sold750,000200,000Operating Expenses 550,000200,000 Net Income$200,000 =======$100,000


PollmanShellsSales$1,500,000$500,000Cost of Goods Sold750,000200,000Operating Expenses550,000200,000Net Income$200,000

=======$100,000

=======Inventory 12/31/X1$120,000$60,000

Pollman sold $300,000 of goods to Shells. 

Of the goods sold $60,000 were not sold on 12/31/X1. 

Pollman has a uniform margin on all of its sales. 

Shells has a uniform margin on all of its sales.

What amount will be reported as consolidated cost of goods sold?

 a. $650,000 

 b. $680,000 

 c. $800,000 

 d. $950,000 

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