Company Pogba acquired 75% of Company Drogba. During the year company A sold goods to company. The following information is available:
(i) Company Pogba made sales of £68 000 to Company B.
(ii) Company Pogba sold the goods to company B at a mark-up of 30%.
(iii) Company Drogba has half of the goods in their inventory at the year end.
What adjustment will be made to cost of sales in the consolidated accounts to account for the above?
A £7 846 decrease
B £52 308 decrease
C £57 800 decrease
D £60 154 decrease