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The home office bills NOP branch at a markup above cost. During the year 2006 goods costing P825,000 were shipped to the branch. The account
The home office bills NOP branch at a markup above cost. During the year 2006 goods costing P825,000 were shipped to the branch. The account Allowance for Overvaluation has a balance of P330,000 before adjustment. The net income of the branch is understated by P82,000. How much is the ending inventory in the books of the branch?
a. P868,000 c. P205,000
b. P620,000 d. P287,000
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