Problem III Penny Company opened its Palawan branch only this year. At year end, the branch summarized operating data as follows: Sales, P264,000; Shipments from Home Office, P148,500; Purchases, P137,500; Expenses, P71,500; Ending Inventory P82,500 of which P16,500 from other suppliers. The branch remitted P151,250 to the home office. 1. If shipments form the home office are billed at cost plus 20%, compute for: a. Ending Inventory b. Allowance for Overvaluation of Branch Inventory 2. True net income of Palawan
Problem III Penny Company opened its Palawan branch only this year. At year end, the branch summarized operating data as follows: Sales, P264,000; Shipments from Home Office, P148,500; Purchases, P137,500; Expenses, P71,500; Ending Inventory P82,500 of which P16,500 from other suppliers. The branch remitted P151,250 to the home office. 1. If shipments form the home office are billed at cost plus 20%, compute for: a. Ending Inventory b. Allowance for Overvaluation of Branch Inventory 2. True net income of Palawan
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 16E: Dollar-Value LIFO A company adopted the LIFO method when its inventory was 1,800. One year later its...
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