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What is the balance of the unrealized profit in branch inventory on december 31, 2016?

What is the balance of the unrealized profit in branch inventory on december 31, 2016?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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What is the balance of the unrealized profit in branch inventory on december 31, 2016?

The following data were provided by the accountants of the Home Office and Branch for the year ended December 31, 2016: Particulars Home Office book Branch Book Net sales to outside customer P1,000,000 P800,000 Beginning inventory Net purchases from outside supplier Shipments to branch Shipments from Home Office Ending inventory Operating expenses The current corporate income tax rate is 30% It is the policy of the company to use specific identification for inventory For the year ended December 31, 2015, the Home Office bills its branch with a gross profit rate of 40% based on cost Half of the beginning inventory of the branch was acquired from outside suppliers The ending inventory of the branch is broken down as follows 60% from outside suppliers 26% from 2016 shipment from home office 14% from 2015 shipment from home office 300,000 800,000 400,000 140.000 250,000 100,000 200,000 500,000 200,000 100,000
Transcribed Image Text:The following data were provided by the accountants of the Home Office and Branch for the year ended December 31, 2016: Particulars Home Office book Branch Book Net sales to outside customer P1,000,000 P800,000 Beginning inventory Net purchases from outside supplier Shipments to branch Shipments from Home Office Ending inventory Operating expenses The current corporate income tax rate is 30% It is the policy of the company to use specific identification for inventory For the year ended December 31, 2015, the Home Office bills its branch with a gross profit rate of 40% based on cost Half of the beginning inventory of the branch was acquired from outside suppliers The ending inventory of the branch is broken down as follows 60% from outside suppliers 26% from 2016 shipment from home office 14% from 2015 shipment from home office 300,000 800,000 400,000 140.000 250,000 100,000 200,000 500,000 200,000 100,000
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