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April 30th, 2015, 09:02 PM   #1
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Unrealised profit

During the year ended 31st December 2009, Grey Ltd has sold goods
to Blue plc for £65,000 (transfer price). The standard gross profit % charged on inter-company sales is 30%.

50% of these goods have since been sold by Blue plc to external customers.

I used to calculate like that , 65000 x 0.3 x 0.5 = 9750
but the marking scheme is given the unrealised profit is 13000 . I just wonder how it is calculate or maybe i misunderstand the meaning of transfer price ? Can anyone explain to me step by step . Thank you.
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profit, unrealised

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