A home office transfers inventory to its branch at a 20% markup on cost. During 2018, inventory costing the home office P80,000 was transferred to the branch. At year-end, the home office adjusted its Unrealized Intercompany Inventory Profit account downward by P18,200. The branch's year-end balance sheet shows P4,800 of inventory acquired from the home office. 

How much is the beginning inventory of the branch at cost?

Answer rating: 100% (QA)

The branch acquired P4800 of inventory from the home office at a 20 markup on cost so the cost of th... View the full answer