Use the following information for the next two questions: ABC Co. decided to open a branch in Manila. Shipments of merchandise to the branch totaled ₱54,000 which included a 20% mark-up on cost. The branch submitted the following report summarizing its operations for the period ended December 31, 20x1. Sales on account......... 74,000 Sales on cash basis........ 22,000 Collection of account....... 60,000 Expenses paid .......... 38,000 Expenses unpaid......... 17,000 Purchase of merchandise for cash........... 26,000 Inventory on hand, Dec. 31; 80% from home office....... 30,000 Remittance to home office.......... 55,000 Q1: How much is the branch’s ending inventory at cost? Q2: How much is the profit (loss) of the branch as far as the home office is concerned?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Use the following information for the next two questions:
ABC Co. decided to open a branch in Manila. Shipments of merchandise to the branch
totaled ₱54,000 which included a 20% mark-up on cost. The branch submitted the
following report summarizing its operations for the period ended December 31, 20x1.

Sales on account......... 74,000
Sales on cash basis........ 22,000
Collection of account....... 60,000
Expenses paid .......... 38,000
Expenses unpaid......... 17,000

Purchase of merchandise for cash........... 26,000
Inventory on hand, Dec. 31; 80% from home office....... 30,000
Remittance to home office.......... 55,000

Q1: How much is the branch’s ending inventory at cost?
Q2: How much is the profit (loss) of the branch as far as the home office is
concerned?

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