A home office transfers inventory to its branch at a 20% markup on cost. During 2018, inventory costing the home office P80,000 was transferred to the branch. At year-end, the home office adjusted its Unrealized Intercompany Inventory Profit account downward by P18,200. The branch's year-end balance sheet shows P4,800 of inventory acquired from the home office. How much is the beginning inventory of the branch at cost? 15,000 18,000 3,000 16,000

A home office transfers inventory to its branch at a 20% markup on cost. During 2018, inventory costing the home office P80,000 was transferred to the branch. At year-end, the home office adjusted its Unrealized Intercompany Inventory Profit account downward by P18,200. The branch's year-end balance sheet shows P4,800 of inventory acquired from the home office. How much is the beginning inventory of the branch at cost? 15,000 18,000 3,000 16,000

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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