Cute Company operates a branch in Baguio City. Selected balances taken from the books of Home Office and Branch as of December 31, 2021 are as follows (see image below). The branch ending inventory included items costing P8,700 that were acquired from outside suppliers. 1. How much is the Inventory on January 1 of the Branch that came from the Home Office? 2. How much is the Cost of Sales of the Branch at cost? 3. How much is the Consolidated Net Income? 4. How much is the Consolidated Inventory at December 31, 2021?
Cute Company operates a branch in Baguio City. Selected balances taken from the books of Home Office and Branch as of December 31, 2021 are as follows (see image below). The branch ending inventory included items costing P8,700 that were acquired from outside suppliers. 1. How much is the Inventory on January 1 of the Branch that came from the Home Office? 2. How much is the Cost of Sales of the Branch at cost? 3. How much is the Consolidated Net Income? 4. How much is the Consolidated Inventory at December 31, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cute Company operates a branch in Baguio City. Selected balances taken from the books of Home Office and Branch as of December 31, 2021 are as follows (see image below). The branch ending inventory included items costing P8,700 that were acquired from outside suppliers.
1. How much is the Inventory on January 1 of the Branch that came from the Home Office?
2. How much is the Cost of Sales of the Branch at cost?
3. How much is the Consolidated Net Income?
4. How much is the Consolidated Inventory at December 31, 2021?
Transcribed Image Text:Sales
Inventory, 01/01/2021
Purchases
Shipment to Branch/from HO
Allowance for Overvaluation
Inventory, 12/31/2021
Home Office
380,000
24,000
300,000
150,000
39,500
28,000
Branch
353,000
16,000
60,000
187,500
20,700
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