14. Information on a home offtice and its branch is as follows: Branch Home office 12,000 Inventory, beg. Purchases 8,000 150,000 30,000 93,750 Shipments from home office Shipments to branch Branch inventory allowance Sales 75,000 19,750 115,000 176,500 Inventory, end. 14,000 10,350 The branch's ending inventory includes P4,350 from external purchases. From the home office's viewpoint: (1) what is the branch's true cost of sales; and (2) how much is the understatement of the branch's profit? a. 97,120; 18,550 b. 102,850; 18,250 (RPCPA - Adapted) c. 102,850; 18,550 d. 121,400; 18,000

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