Problem VI Win Company has a branch in JAA City. JAA receives all its merchandise from Win at 25% above cost and sells them at 40% markup on cost. Win also sells merchandise to outsiders at 40% above cost. Below are excerpts from the trial balances of Win and JAA. Sales Purchases Beginning inventory Shipments to Branch Shipments from HỌ Win 5,880,000 6,250,000 350,000 2,000,000 JAA 3,360,000 330,000 200,000 2,375,000 540,000 Allowance for Overvaluation Ending inventory Operating expenses 1,200,000 325,000 1. Branch ending inventory 2. True net income of the branch Problem VII On October 2, 2020, Keating Company established a branch in Annalise District with initial working fund of P225,350. Below are the transactions for the month of October 2020 i. Shipment to branch costing P500,000 shipped at 40% above cost. 20% is in transit to brandch as of October 31. ii. Home office send equipment to branch, P35,000. ili. Branch purchase from the outsider, P322,000. iv. Branch sales for the period, P1,580,000 (all cash, no discount); at a uniform rate of 60% gross profit. v. Allocated expenses from the home office not recognized by the branch, P25,000. vi. Branch recorded expenses, P492,000. vii. Branch insurance premium for the month of November paid by the home office not P5,000. recognize by the branch, viii. The branch collected home office accounts receivable amounting to P35,000. Notification is not yet made. ix. Remittance from Annalise District Branch amounting to P65,200, erroneously credited by the home office to Bonnie District Branch. x. Ending inventory (October 31) in the branch book per physical count: From Outsider: P82,000; From the Home Office: ? 1. How much is the branch net income as of October 31, 2020 as far as the home office is concerned? 2. How much is the adjusted balance of reciprocal accounts as of October 31, 2020? Problem VIII The following pertains to Bright Inc. home office and its branch: Home Office Books Branch Books Inventory, January 1- From outside purchases P480,000 P32,000 Inventory, January 1- From home office, at 110% of cost 132,000 Purchases from outsiders 1,200,000 320,000 Shipments to Branch 360,000 Shipments from home office 372,000 Inventory, December31- From outside purchases 300,000 160,000 Inventory, December31- From home office, at 1109% of cost 130,000 1. What is the combined cost of sales for the year?