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WITH SOLUTION

Questions 14 through 15 are based on the following information. Selected information from the trial balances for the home office and the branch of Lalay Company at December 31,2012 is provided. The branch acquires merchandise from the home office and outside suppliers. Ads 14. The billing rate of home office to branch for merchandise shipments is a. 120% of cost c. 130% of cost b. 12.5% of cost d. 135% of cost 15. How much of the December 1 inventory of the branch represent purchases from outsiders and goods shipped from home office a. Home office, P5,000 and Outsiders, P10,000 C. Home office, P8,000 and Outsiders, P7,000 b. Home office, P15,000 and Outsiders, P00,000 d. Home office, P12,000 and Outsiders, P3,000