13-6:
a
Shipment to branch, at cost
P312,500
Shipping cost
2,000
Billed price
P314,500
Sold (50%)
157,250
Inventory, at billed price
P157,250
13-7:
c
Home office account balance after closing branch profit
P765,000
Less:
branch profit
130,000
Investment in branch account balance before closing branch profit
P635,000
13-8:
d
Branch ending inventory, at billed price
P
50,000
Acquired from home office, at billed price:
Cost (P6,000 / 20%)
P30,000
Mark-up
6,000
36,000
Purchased from outsiders
P
14,000
13-9:
b
Cost of goods sold – Home office
P590,000
Cost of goods sold – Branch:
Billed price
P300,000
Less:
overvaluation (P110,000 – P90,000)
20,000
280,000
Combined cost of goods sold
P870,000
13-10: c
13-11:
d
Overvaluation of branch ending inventory acquired from HO:
Billed price
P
28,600
Cost (P28,600 / 130%)
22,000
Adjusted balance of allowance for overvaluation account
P
6,600
13-12: b
Shipment from home office
P
90,000
Expenses
17,000
Cash remittance to home office
(70,000
)
Home Office account balance before closing
P
37.000
13-13: b
17
Shipment to branch, at cost
P
72,000
Ending inventory, at cost (P70,000 / 30%)
( 21,600
)
Cost of goods sold
P
50,400
Freight (P6,000 x P50,400/P72,000)
4,200
Total
P
54,600
13-14: b
(20% of P30,000)
13-15: b
(P151,200 / 140%)
13-16: c
Sales
P270,000
Cost of goods sold
Shipments from home office (P151,200/140%)
P108,000
Inventory, 1/1
(P28,350 / 140%)
20,250
Inventory, 12/31 (P25,200 / 140%)
( 18,000)
110,250
Gross profit
P159,750
Expenses
90,000
Branch profit as far as the home office is concerned
P
69,750
13-17: c
Unsold merchandise
P
60,000
Less:
Merchandise acquired from home office, at billed price
45,000
Merchandise acquired from outsiders
P
15,000
Merchandise acquired from home, at cost (P7,500 / 20%)
37,500
Branch inventory at cost, 12/31
P
52,500
13-18: a
Branch inventory, 1/1
P
54,600
Acquired from home office – at billed price:
Overvaluation [P99,900 – (P390,000 – P300,000)]
P
9,900
Cost (P9,900 / 30%)
33,000
42,900
Purchases from outsiders
P
11,700
13-19: c
Acquired from home office [(P60,000 x 80%) ÷ 120%]
P
40,000
Acquired from outsiders
(P60,000 x 20%)
12,000
Branch inventory, 12/31 – at cost
P
52,000
13-20: b
Sales (P148,000 +
P144,000)
P192,000
Cost of sales – at cost to home office:
Shipment from home office (P108,000 / 120%)
P90,000
Purchases
52,000
18
Inventory, 12/31 (no. 19 above)
(52,000)
90,000
Gross profit
P102,000
Expenses (P76,000 + P24,000)
100,000
Branch net income (actual)
P
2,000
13-21: b
Allowance for overvaluation account balance
P
57,500
Overvaluation on the shipment (P200,000 x 25%)
50,000
Overvaluation on the branch beginning inventory
P
7,500
Cost of branch beginning inventory (P7,500 / 25%)
30,000
Branch beginning inventory – at billed price
P
37,500
13-22: b
Sales
P400,000
Cost of goods sold – cost to home office
Beginning inventory
P
30,000
Shipment from home office
200,000
Ending inventory (P40,000 / 125%)
(
32,000)
198,000
Gross profit
P202,000
Expenses
100,000
Branch net income as far as the home office is concerned
