branch for the January 3, 2004, transfer, assuming that the freight cost of the merchandise from the home l (a) he home office, (b) the South Fork branch, and (c) the Sandy office to the Sandy branch would have been $600. Summarized data taken from the trial balances of Manning Corporation's home office and brancih ember 31, 2005, are as follows: Home Office Other assets Branch Inventory, January 1 Purchases Shipments from home office Expenses $340,000 50,000 10,000 80,000 Branch S 61,200 4,800 24,000 $500,000 25,200 800 Liabilities Loading in beginning branch inventory Home office Capital stock Retained earnings, January 1 Sales Shipments to branch S 10,000 50,000 200,000 130,000 120,000 24,000 40,000 $100,000 The 2005, the home office in was $6,000. home office ships merchandise to its branch at 120% of home office cost. At December 31, ventory at cost was $15,000 and the branch inventory at transfer prices REQUIRED 1. Prepare a schedule of cost of sales. 2. Pre comparative home office, branch, and combined income statements for Manning Corporation for th e year ended December 31, 2005