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 Branch Sales P380,000 P353,000 Shipments to branch 150,000 - Branch merchandise mark-up 39,500 - Inventory, June 1, 2015 24,000 16,000 Purchases 300,000 60,000 Shipments from home office - 187,500 Inventory, May 31, 2016 28,000 20,700 The branch ending inventory included items costing P8,700 that were acquired from outside suppliers. The realized mark-up on branch merchandise that would be recognized by the home office is P36,000 P36,700 P37,100 P38,040 None of these How much is the cost of sales presented in the Branch books? P263,500 P222,800 P204,500 P242,800 None of these How much is the mark-up from beginning inventory of the Branch? P2, 400 P4, 140 P3, 200 P38,300 None of these How much is the combined ending inventory of ABC Company? P48,700 P46,300 P38, 300 47, 800 None of these
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
Branch
Sales
P380,000
P353,000
Shipments to branch
150,000
-
Branch merchandise mark-up
39,500
-
Inventory, June 1, 2015
24,000
16,000
Purchases
300,000
60,000
Shipments from home office
-
187,500
Inventory, May 31, 2016
28,000
20,700
The branch ending inventory included items costing P8,700 that were acquired from outside suppliers.
The realized mark-up on branch merchandise that would be recognized by the home office is
P36,000
P36,700
P37,100
P38,040
None of these
How much is the cost of sales presented in the Branch books?
P263,500
P222,800
P204,500
P242,800
None of these
How much is the mark-up from beginning inventory of the Branch?
P2, 400
P4, 140
P3, 200
P38,300
None of these
How much is the combined ending inventory of ABC Company?
P48,700
P46,300
P38, 300
47, 800
None of these
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