The OK Company, Inc. opened an agency in Makati in 2001. The following is a summary of the transactions of the agency: Sales orders sent to home office 66,000 Sales orders filed by home office in 2018 55,800 Freight in shipment to agency 1,320 Collections, net of 2% discount 47,628 Selling expenses paid from the agency 3,384 working fund Administrative expenses charged to agency 5% of goss sales Samples shipped to agency: Cost 3,600 Inventory, Dec. 31, 2018 1,320 The company maintains its gross margin on agency gross sales at 30% excluding the freight cost on shipments to agency. Agency's net income is?

The OK Company, Inc. opened an agency in Makati in 2001. The following is a summary of the transactions of the agency: Sales orders sent to home office 66,000 Sales orders filed by home office in 2018 55,800 Freight in shipment to agency 1,320 Collections, net of 2% discount 47,628 Selling expenses paid from the agency 3,384 working fund Administrative expenses charged to agency 5% of goss sales Samples shipped to agency: Cost 3,600 Inventory, Dec. 31, 2018 1,320 The company maintains its gross margin on agency gross sales at 30% excluding the freight cost on shipments to agency. Agency's net income is?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter16: Multistate Corporate Taxation

Section: Chapter Questions

Problem 35P

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A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
On June 1, 2013, COG Company in Baguio established a sales agency in La Trinidad, Benguet.Upon the establishment of the sales agency, the home office sent merchandise samples costingP8,000 and a cash working fund of P3,000 to be maintained on the imprest basis.During the month of June, the sales agency reported to the home office sales orders. These werebilled at P70,000, of which P40,000 was collected. The sales agency paid expenses of P2,800 but wasreimbursed by the home office. On June 30, 2013, the sales agency samples were valued at P6,000.It was estimated that the gross profit on goods shipped to fill sales agency sales orders averaged40% of cost. What is the net income of the sales agency for the month of June 30, 2013?
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CD Company established an agency in Cebu City sending its merchandise samples costing P90,000 and a working fund of P50,000 to be maintained on an imprest balance on April 15, 2020. During the month of April, the agency transmitted to the home office sales orders costing P468,750. However, the home office was able to fill-up only 80% of the orders. Total cash of P250,000 was collected from the customers. A home office disbursement chargeable to the sales agency includes the acquisition of equipment for Cebu agency, P180,000 to be depreciated at 10% per annum. The agency paid expenses of P43,700 and received replenishment thereof from the home office. The agency samples are good for one year only. It was estimated that the gross profit on goods shipped to agency averages 25% How much is the net income (loss) of the agency? A.44,800B.76,800C.80,550D.45,550
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Alpha Corp. has a branch in Pasig City established on May 31, 2021. During 2021, the home office shipped merchandise to the branch at billed value of 125,000 which was 25% above cost. At the end of the year, the branch reported sales of 200,000, operating expenses of 95,000, and a net income from its operation of 15,000. What is the branch's true net income?