Smamon Company operates a branch in Legazpi Cry, There are shipments in transit from home office to the branch. The home office ship merchandise to the branch at 125% of cost in the year 20x8, operating data for the home office and the branch is as follow ELI Shipments to branch Cost to home office Billing 10.000 32. 500 Home office acquired from outsiders, at cust Brunch Acquired boom outsiders, of cost Acquired bombay office, I biled pico, which average 20% xbox com 24000 Iwentones. December 31, 7018 Home office sequined from outsider, at cost Branch. 14,080 Acquired from outsiders, at outs Acquired fromhome office, at 20cl billed price 71 003 Required: 1, The amount of merchandise in transit! a P3,500 G. P.7.600 dP10,500 diThe combined cast of goods sold: a P240.009 G. P242509 b P241.200 4 P245.200 3 The combined not income: c. P42,500 b P32 400 d P33,800 Branch AA is authorized by its Home Office to send to Branch 88 P10,000 cash Now this batafer in best recorded on the books or " Home Office (2) Branch AA and (3) Branch BB. The Manida Comparty maintains branches that market the products that it produces. Merchandise is billed to the branches of manufacturing costs, with the branches paying the freight charges from the home office to the branch On November 15, Branch No. 1 ships a portion of its merchandise to Branch No, 5 upon authorization by the home office. Originally, Branch No. 1 had been billed for this merchandise at P16,000 and paid freight charges of P3,500 on the shipment from the home office. Branch No. 5, upon receiving the merchandise, pays freight changes of P2.500 on the shipment from Branch Na. 1. if the shipment had been made from the home office directly to Aninch No. 5, the freight cost to Branch No. 5 would have been P4,000. How the merchandise transfers should be recorded on the books of (2 Branch No. 1, and (3) Branch No. 5 YY Corporation has two branches to which merchandise is transferred at cost plus 201, plus freight charges. On November 30, 2014, VY Corporation shipped merchandise that cost P5,590 to its OG Branch, and the P200 shipping charges were paid by YY Corporation On December 15, 2014, the DD Branch encountered an inventory shortage. and the CC Branch shipped the merchandise to the DD Branch at a freight cost of PIGD paid by the CC Branch. Shipping charges from the home office to the DD Branch would have been P175. 1. YY Corporation will record the P5.500 shipment to the CC Branch. together with the P200 shipping charge. in a journal entry that includes the following A Shipments from home office, PL,600 b Shipments to OC Branch, P5700 Unrealized profit - branch inventory. P1,100. Investment in CC Branch, P5 700. CC Branch should treord the transfer of merchandise to the DO Branch by either a debit or credit entry that Includes the following Shipments from home office. P5,500. DD Branch, P6,975. Home Office. P6,950 Invontory P5,650 L 3. If the merchandise is unsold of year end, the DD Branch will inventory the merchandise at & P6,000 b. P6.975 d P6, 775 It the merchandise is unsold at year-end, TY Corporation will include it as an asset in its Annual Report to Stockholders in the amount of; a P5,500 3. P5,675 b P5.610 d P5,075 5The lots on excessive freight charges on the inter-branch transfer amounted to a. P200c. P175 D P160 4 P145 The following are transaction in tolation to an agency of a home office The transfer of P5 000 to an agency to establish a working fund Receipt of sales orders from the agency. P50.000. Collections of agency accounts by the home office, P35,000. Home office disbursements representing agency expenses, P4,500. Replenishment of the agency working fund upon receipt of expense vouchers for P2,250 Cost of goods sold identified with agency sales, P36,000. Determine the net income identified with the agency. & P2.250 C. P11,750 h. P7250 d P14,000