VII. It is the policy of the home office to bill the branch for shipments of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
VII. It is the policy of the home office to bill the branch for shipments of inventory at 20% above cost. The branch in turn prices inventory for sale purposes at 25% above billed price. On January 10, 2016, the entire branch inventory is destroyed by fire. No insurance was maintained. Branch account shows the following information: Beginning inventory (at billed price) Shipments from home office (Jan 1-10) Sales Sales returns Sales allowances What is the cost of inventory destroyed by fire? P 26,400 20,000 15,000 2,000 1,000 VII. It is the policy of the home office to bill the branch for shipments of inventory at 20% above cost. The branch in turn prices inventory for sale purposes at 25% above billed price. On January 10, 2016, the entire branch inventory is destroyed by fire. No insurance was maintained. Branch account shows the following information: Beginning inventory (at billed price) Shipments from home office (Jan 1-10) Sales Sales returns Sales allowances What is the cost of inventory destroyed by fire? P 26,400 20,000 15,000 2,000 1,000
Expert Answer:
Answer rating: 100% (QA)
Solution To determine the cost of inventory destroyed by fire we need to work backwards from the bra... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
Samples of Republicans and Democrats were asked to rate on a scale from 1 to 7 their opinion of prayer in public schools, with 1 being the most opposed to school prayer and 7 being the most in favor...
-
Old Office Building Karas Investments owns a small office building in Windhoek, from which the company operates. The Windhoek office was purchased on 1 March 2019. Karas Investments decided to move...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Firebird Bicycle Company, a fictional company, produces three brands of bicycles: Racing, Mountain, and Cruiser bicycles. The master schedule in the following table shows the demand requirements for...
-
Estimate the time between each photoflash of the apple in Fig 2-18 (or number of photoflashes per second). Assume the apple is a bout 10cm in diameter.
-
A 13.6-kg block is supported by the spring arrangement shown. If the block is moved from its equilibrium 44 mm vertically downward and released, determine (a) The period and frequency of the...
-
Journalize the following transactions for Antique Furniture, Inc., that occurred during the month of April. Antique Furnitures cost of inventory is 70% of the sales price. Apr 3 Sold $2,100 of...
-
Ellis issues 6.5%, five-year bonds dated January 1, 2015, with a $250,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $255,333. The annual market rate is...
-
Consider the following idealized world. There are no corporate or personal taxes. Capital markets are perfect. There are no bankruptcy costs. Individuals and corporations can both borrow at 10...
-
For the case of methanol synthesis discussed in Example 22.2, determine the appropriate expression for the equilibrium constant K(T) for the case when inerts are present in the feed along with the...
-
Peter and Heidi Mathews are married and are both 50-year-old Australian residents. During the 2020-21 tax year, Heidi earned $35,000 of assessable income from carrying on her florist shop business....
-
Monty Industries changed from the double - decliningbalance to the straight - line method in 2 0 2 6 on all its equipment There was no change in the assets salvage values or useful lives. Plant...
-
The fastest spacecraft ever launched. The New Horizons mission to Pluto had a long way to travel: about 40AU. Even though its traveling at an average speed of about 20 km/sec, it took years to get...
-
What is the significance of cultural memory and collective memory in constructing and perpetuating national and ethnic identities ?
-
Intro to health psychology: Compared to pathological diagnosis, what are the strengths and weaknesses of clinical diagnosis in health psychology?
-
How do theories of performativity, as articulated by scholars like Judith Butler, inform our understanding of the enactment and subversion of gendered and cultural identities ?
-
"West Coast Transit Case Study" resource. Describe the three criteria for evaluating effective team/group work (as stated in the textbook) and use the criteria to analyze the effectiveness of the...
-
6. (Potential Energy and Conservation of Energy) What should be the spring constant k of a spring designed to bring a 1200-kg car to rest from a speed of 95 km/h so that the occupants undergo a...
-
Ken (age 31) and Amy (age 28) Booth have brought you the following information regarding their income, expenses, and withholding for the year. They are unsure which of these items must be used to...
-
Leslie and Leon Lazo are married and file a joint return for 2012. Leslie's Social Security number is 466-47-3311 and Leon's is 467-74-4451. They live at 143 Snapdragon Drive, Reno, NV 82102. For...
-
During 2012, William purchases the following capital assets for use in his catering business: New passenger automobile (September 30)........................$21,500 Baking equipment (June 30)...
-
Provide five examples of actions that board members could take to support effective ERM.
-
How does the auditor document the assessment of corporate governance?
-
What is the public accountants goal in auditing corporate governance?
Study smarter with the SolutionInn App