Answered step by step
Verified Expert Solution
Question
1 Approved Answer
From Home office: Beginning inventory - P250,000 Ending inventory - P300,000 From Outside: Beginning inventory - P50,000 Ending inventory - P75,000 The Home office ascertained
From Home office:
Beginning inventory - P250,000
Ending inventory - P300,000
From Outside:
Beginning inventory - P50,000
Ending inventory - P75,000
The Home office ascertained that the true net income of the branch was P1,075,000
What is the mark-up on cost for the inventory shipments from Home office to branch?
118%
22.5%
18%
122.5%
Using the information in the previous question, the branch ending inventory reported at cost on December 31, 2018 is:
P254,000
P319,900
P204,000
P244,900
The income statement submitted by the branch to the home office for the year ended December 31, 2019 follows: Sales P4,200,000 Less: Cost of goods sold Beginning inventory P300,000 Shipments from HO 2,500,000 Purchases 500,000 Ending inventory (375,000) 2,925,000 Gross profit 1,275,000 Operating expenses 650,000 Net income P625,000 The branch inventories consisted of the following:
Step by Step Solution
★★★★★
3.35 Rating (161 Votes )
There are 3 Steps involved in it
Step: 1
Ans Mark up in cost is 22 True income of the branch 1075000 Present incom...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started