Home Office transfers inventory to its Branch at a 20% mark-up on cost. During 2020, inventory costing the Home Office P64,000 was transferred to the Branch. At year-end the Home Office adjusted its Allowance for Overvaluation account downward by P14,560. The Branch's year-end balance sheet shows P3,840 acquired from Home Office. How much is the beginning inventory of the Branch at cost?
Home Office transfers inventory to its Branch at a 20% mark-up on cost. During 2020, inventory costing the Home Office P64,000 was transferred to the Branch. At year-end the Home Office adjusted its Allowance for Overvaluation account downward by P14,560. The Branch's year-end balance sheet shows P3,840 acquired from Home Office. How much is the beginning inventory of the Branch at cost?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 2RE: On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the...
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Home Office transfers inventory to its Branch at a 20% mark-up on cost. During 2020, inventory costing the Home Office P64,000 was transferred to the Branch. At year-end the Home Office adjusted its Allowance for Overvaluation account downward by P14,560. The Branch's year-end
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