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Please include your solution. A home office transfer inventory to its branch at a 20% markup on cost. During 2016, inventory costing the home office
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A home office transfer inventory to its branch at a 20% markup on cost. During 2016, inventory costing the home office P160,000 was transferred to the branch. At year-end, the home office adjusted its Deferred Profit account downward by P36,400. The branch's year-end statement of financial position shows P9,600 of inventory acquired from the home office.
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Calculate the home office's cost of the branch's beginning inventory
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