Question - Morneau Company, a 100% owned subsidiary of Robertson Corporation, sells inventory to Robertson at a 30% profit on selling price. The following data are available pertaining to inter-company purchases by Robertson:
Intercompany Sales:
2016: $17,600
2017: $24,300
2018: $27,000
Unsold at year end (based on selling price):
2016: $3,200
2017: $5,700
2018: $4,800
Morneau's profit numbers were $113,000, $204,000 and $225,600 for 2016, 2017, and 2018, respectively. Robertson received dividends from Morneau of $21,000 for 2016 and 2017, and $25,000 for 2018.
What would be the net debit or credit to cost of goods sold on the 2017 consolidation worksheet?
A. $25,050 credit
B. $750 debit
C. $23,550 credit
D. $34,300 credit