The following information came from the books and records of Davao Corporation and its branch. The...

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The following information came from the books and records of Davao Corporation and its branch. The balances are as of December 31, 20x8, the fourth year of the corporation's existence. Sales Shipments to branch Shipments from home office Purchases Expenses Inventory, January 1, 20x8 Unrealized profit in branch inventory Home Office Dr. (Cr.) P(480,000) (272,000) Branch Dr. (Cr.) P(1,700,000) 720,000 360,000 320,000 144,000 There are no shipments in transit between the home office and the branch. Both shipments accounts are properly recorded. The closing inventory at billed prices includes merchandise acquired from the home office in the amount of P108,000 and P60,000 acquired from the vendors for a total of P168,000. Required: 1. The billing price based on cost imposed by the home office to the branch? 2. How much of the beginning inventory was acquired from home office and from outsiders? 3. What is the true branch net income? The following information came from the books and records of Davao Corporation and its branch. The balances are as of December 31, 20x8, the fourth year of the corporation's existence. Sales Shipments to branch Shipments from home office Purchases Expenses Inventory, January 1, 20x8 Unrealized profit in branch inventory Home Office Dr. (Cr.) P(480,000) (272,000) Branch Dr. (Cr.) P(1,700,000) 720,000 360,000 320,000 144,000 There are no shipments in transit between the home office and the branch. Both shipments accounts are properly recorded. The closing inventory at billed prices includes merchandise acquired from the home office in the amount of P108,000 and P60,000 acquired from the vendors for a total of P168,000. Required: 1. The billing price based on cost imposed by the home office to the branch? 2. How much of the beginning inventory was acquired from home office and from outsiders? 3. What is the true branch net income?

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To answer your questions lets analyze the given information step by step 1 The billing price based on cost imposed by the home office to the branch Th... View the full answer