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B- The home office of Farah Company, bills its only branch at a markup of 25% above home office cost for all merchandise shipped to
B- The home office of Farah Company, bills its only branch at a markup of 25% above home office cost for all merchandise shipped to Habiba branch. During 2019 the home office shipped merchandise to the branch at a billed price of $ 30,000.Habiba branch inventories for 2019 were as follows: From home office(at billed price) Purchased from outsiders Jan. 1 15000 6800 Dec.31 19500 8670 Required: 1. Prepare a working paper to analyze the flow of merchandise to Habiba Branch. Assuming a uniform markup on all shipments to the branch, and compute realized gross profit. (7 marks) 2. Preparejoumal entries (including adjusting entries) for the home office of Farah Company for 2019. (6 marks) [GOOD LUCK [END OF QUESTIONS]
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