A home office ships inventory to its branch at 125% of cost.  The required balance of the Deferred Profit account is P236,250.  During the year, the home office sent merchandise to the branch costing P2,352,000.  At the start of the year, the branch’s balance sheet shows P945,000 of inventory on hand that was acquired from the home office.  By what amount is the cost of goods sold overstated?* a. P 777,000 b. P 540,750 c. P 236,250 d. P 588,000 pls. answer it asap thanks

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