question archive Home office bills its branches for merchandise shipments at 25% above cost of
Home office bills its branches for merchandise shipments at 25% above cost of
Subject:AccountingPrice:3.87 Bought7
Home office bills its branches for merchandise shipments at 25% above cost of. The following are some of the account balances appearing on the books of home office and its branch as of December 31
Home Office Books Branch Books
Inventory, Jan. 1 22,500 36,000
Shipments from home office 210,000
Purchases 675,000 225,000
Shipments to branch 180,000
Allowance for overvaluation of branch inventory 49,500
Sales 900,000 540,000
Operating expenses 217,500 82,500
The ending inventory of the branch of 54,000 includes goods from outside purchases of 12,000; the ending inventory of the home office is 112,500.
Required:
I. The amount of shipments in transit at cost
II. The overstatement of branch cost of sales
III. The combined net income for the year
Option 1
Low Cost Option
Download this past answer in few clicks
3.87 USD
PURCHASE SOLUTION
Option 2
Custom new solution created by our subject matter experts
GET A QUOTE
rated 5 stars
Purchased 7 times
