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This Study Resource Was: Home Office Books Branch Books
This Study Resource Was: Home Office Books Branch Books
This Study Resource Was: Home Office Books Branch Books
The following are some of the account balances on the books of home office and its branch as of
December 31, 2022:
Per physical count, the ending inventory of the branch is P73,500 including goods from outside purchase
of P48,475; the ending inventory of the home office is P210,000.
m
er as
co
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What is the amount of the unrealized profit in the separate books of the home office on January 1,
2023?
o.
a. 21,000 rs e
ou urc
b. 15,750
c. 19,250
d. 52,500
o
aC s
vi y re
What is the branch branch beginning inventory in 2022 that came from outside purchases?
a. 48,475
ed d
b. 19,250
ar stu
c. 33,250
d. 0
is
a. 679,875
b. 781,375
sh
c. 705,250
d. 715,400
What is the total ending inventory to be shown on the combined financial statements?
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a. 280,000
b. 277,725
c. 283,500
d. 328,475
a. 957,950
b. 942,725
c. 876,750
d. 919,275
Solution:
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Shipments to branch P 257,750
co
30%
eH w
P76,125
o.
Branch Inventory Allowance (91,875)
Unrealized Profit of H.O rs e P 15,750
ou urc
Inventory Total-Beginning P 101,500
o
[(P15,000/30%)x130%] (68,250)
vi y re
Shipment from HO
ar stu
(P253,750x130%) 329,875
Purchases 350,000
Cost of Goods Available for Sale P 781,375
is
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Ending Inventory (25,025) (19,250) ( 5,775)
(65,975) (50,750) (15,225)
(48,475) (48,475) -
Cost of Goods Sold-Branch P 641,900 P 571,025 P 70,875
Sales P 3,360,000
Cost of Goods Sold 1,717,275
Gross Profit 1,642,725
OPEX (700,000)
Net Income P 942,725
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o.
rs e
ou urc
o
aC s
vi y re
ed d
ar stu
is
Th
sh
This study source was downloaded by 100000812965360 from CourseHero.com on 04-28-2021 04:05:30 GMT -05:00
https://www.coursehero.com/file/41094871/5-Questionsdocx/
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