The Chivas Regal owns the Royal Crown in Quezon City and a branch in Davao City. During 2016, the home office

shipped to the branch supplies costing P120,000 at a billed price of 20% above cost. The inventories of supplies at

the branch were as follows: January 1 - P90,000; December 31 - P108,000. On December 31, 2016, the home office

holds inventories of P160,500, which includes P10,500 held in consignment. Both locations use the periodic inventory

method.

How much inventories should be reported in the combined balance shee as of December 31, 2016?

a. 210,000

b. 240,000

c. 270,000

d. 300,000