The Home Office in Global City bills its QC branch for shipments of goods at 25%...

 

 

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The Home Office in Global City bills its QC branch for shipments of goods at 25% above cost. At the close of the business on April 27, 2020, a fire gutted the branch warehouse and destroyed 70% of the merchandise stock stores therein. Thereafter, the following data were gathered: January 1 Inventory P672,000 Shipments from Home Office, January 1 through April 27 Net Sales, January 1 through April 27 Undamaged merchandise recovered are marked to sell for 1,008,000 1,42,000 P378,000 What is the amount of inventory destroyed by fire per home office records at cost? A. P441,000 B. P178,500 C. P273,000 D. P892,500 How much is the branch net income as provided by GAAP? A. P273,000 B. P892,500 C. P441,000 D. P178,500 The Home Office in Global City bills its QC branch for shipments of goods at 25% above cost. At the close of the business on April 27, 2020, a fire gutted the branch warehouse and destroyed 70% of the merchandise stock stores therein. Thereafter, the following data were gathered: January 1 Inventory P672,000 Shipments from Home Office, January 1 through April 27 Net Sales, January 1 through April 27 Undamaged merchandise recovered are marked to sell for 1,008,000 1,42,000 P378,000 What is the amount of inventory destroyed by fire per home office records at cost? A. P441,000 B. P178,500 C. P273,000 D. P892,500 How much is the branch net income as provided by GAAP? A. P273,000 B. P892,500 C. P441,000 D. P178,500

Answer rating: 100% (QA)

Inventory as on January 1 Shipment from Jan 1 to Apr 27 672000 100... View the full answer