Question
The following information are taken from the books and records of Happy Company and its branch. The balances at December 31, 20x7, the second year
The following information are taken from the books and records of Happy Company and its branch. The balances at December 31, 20x7, the second year of the companys operations are:
| Home office books | Branch books |
Sales | 800,000 | |
Expenses | 200,000 | |
Shipments to branch | 400,000 |
|
Allowance for overvaluation of branch inventory | 115,000 |
|
The branch obtains all of its merchandise from the home office. The home office ships the merchandise at 125% of its cost. The ending inventory of the branch is P80,000 at the billed price.
What was the billed price of the branch beginning inventory?
Select one:
a.
P75,000
b.
P55,000
c.
P65,000
d.
P60,000
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