FRGroup statement of profit or loss - PUP

Hi yes I am stuck with this question now too. Can anyone help? I thought we had to remove the 46000 from revenue and cost of sales and add back purp to cost of sales

In the answer, they have taken GROSS PROFIT figures of Basil and Parsley and then made an adjustment for unrealised profit. The answer would have been same if they took sales first, removed intra-group sales, then adjusted cost of sales for intra-group purchases and unrealised profit. The amount $46,000 is sale price, meaning profit is included in it. Group revenue = 955,000+(421,500*10/12) - 46,000 = 1,260,250 Group COS = 407,300 + (214,600*10/12) - 46,000 + (25%*46,000*30/130) = (542,787) Group gross profit = 717,463 I hope it helps.