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7. How much is the cost of sales presented in the Branch books? a. P263,500 b. P222,800 c. P204,500 d. P242,800 None of these e.

7. How much is the cost of sales presented in the Branch books? a. P263,500 b. P222,800 c. P204,500 d. P242,800 None of these e.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Company operates a branch in Cebu City. Selected accounts taken from the May 31, 2016 statements of ABC and its branch follow: Head Office P380,000 150,000 39,500 24,000 300,000 Branch P353,000 Sales Shipments to branch Branch merchandise mark-up Inventory, June 1, 2015 Purchases Shipments from home office Inventory, May 31, 2016 16,000 60,000 187,500 20,700 28,000 The branch ending inventory included items costing P8,700 that were acquired from outside suppliers. 6. The realized mark-up on branch merchandise that would be recognized by the home office is а. Р36,000 b. Р36,700 с. Р37,100 d. P38,040 e. None of these 7. How much is the cost of sales presented in the Branch books? а. Р263,500 b. P222,800 c. P204,500 d. P242,800 e. None of these 8. How much is the mark-up from beginning inventory of the Branch? a. P2, 400 b. Р4, 140 с. Р3, 200 d. P38,300 e. None of these 9. How much is the combined ending inventory of ABC Company? а. Р48,700 b. P46,300 с. Р38, 300 d. 47, 800 e. None of these
Transcribed Image Text:ABC Company operates a branch in Cebu City. Selected accounts taken from the May 31, 2016 statements of ABC and its branch follow: Head Office P380,000 150,000 39,500 24,000 300,000 Branch P353,000 Sales Shipments to branch Branch merchandise mark-up Inventory, June 1, 2015 Purchases Shipments from home office Inventory, May 31, 2016 16,000 60,000 187,500 20,700 28,000 The branch ending inventory included items costing P8,700 that were acquired from outside suppliers. 6. The realized mark-up on branch merchandise that would be recognized by the home office is а. Р36,000 b. Р36,700 с. Р37,100 d. P38,040 e. None of these 7. How much is the cost of sales presented in the Branch books? а. Р263,500 b. P222,800 c. P204,500 d. P242,800 e. None of these 8. How much is the mark-up from beginning inventory of the Branch? a. P2, 400 b. Р4, 140 с. Р3, 200 d. P38,300 e. None of these 9. How much is the combined ending inventory of ABC Company? а. Р48,700 b. P46,300 с. Р38, 300 d. 47, 800 e. None of these
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