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Goddy Company owns 80% of the common stock of Morris, Inc. In the current year,...

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Accounting

Goddy Company owns 80% of the common stock of Morris, Inc. In the current year, Goddy reports sales of $10,000,000 and cost of goods sold of $7,500,000. For the same period, Morris has sales of $200,000 and cost of goods sold of $160,000. During the year, Goddy sold merchandise to Morris for $60,000 at a price based on the normal markup. At the end of the year, Morris still possesses 30 percent of this inventory. Compute consolidated cost of goods sold.

Select one:

a. $7,500,000.

b. $7,615,000.

c. $7,660,000.

d. $7,600,000.

e. $7,604,500.

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