Playa Vista Co. purchased 90% of Summerland Farms on January 2, 2019. During 2019, Playa
Vista sold Summerland Farms for $650,000 goods which had cost $200,000. Summerland Farms
still owned 15% of the goods at the end of the year. In 2020, Playa Vista sold goods with a cost of
$800,000 to Summerland Farms for $1,000,000 and Summerland Farms still owned 20% of the
goods at year-end. For 2020, cost of goods sold is $1,200,000 for Summerland Farms and
$5,400,000 for Playa Vista. What is consolidated cost of goods sold for 2020?
- $5,627,500
- $6,600,000
- $5,572,500
- $6,250,000
- $5,527,500
- $6,572,500
