Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During 2021, Claneverium Corporation transferred inventory from its home office to its Laguna branch at a billed price of P110,000. The inventory originally cost the

  1. During 2021, Claneverium Corporation transferred inventory from its home office to its Laguna branch at a billed price of P110,000. The inventory originally cost the company P90,000. The home office reported sales and cost of goods sold of P1,400,000 and P590,000, respectively. The Laguna branch reported sales and cost of goods sold of P675,000 and P300,000, respectively. All of the inventory had been sold by year-end. What is the cost of goods sold to be reported in the 2021 combined statement of comprehensive income?
  2. The home office ships merchandise to the branch at 50 percent above cost. On its books the branch shows a beginning inventory of home office merchandise amounting to 15,000 and shipments from home office of 110,000. Its ending inventory of home office merchandise is 5,000. What amount should the home office adjust the allowance for overvaluation of branch inventory account.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial & Managerial Accounting

Authors: Carl Warren

12th Edition

1285534646, 978-1133952428

More Books

Students also viewed these Accounting questions

Question

=+how the customer arrived at their site.

Answered: 1 week ago

Question

5. How can I help others in the network achieve their goals?

Answered: 1 week ago