CDE Company bills its Palawan branch at 140% of cost during 2020. Goods billed at P866,250 were shipped to Palawan branch. The account allowance for overvaluation has a balance of P306,000 before adjustment. The beginning inventory of the branch from the home office at cost is P234,000; the beginning inventory of the branch from outsiders is P38,000. Purchases from outsiders is P326,250. How much is the cost of goods available for sale of the branch?

CDE Company bills its Palawan branch at 140% of cost during 2020. Goods billed at P866,250 were shipped to Palawan branch. The account allowance for overvaluation has a balance of P306,000 before adjustment. The beginning inventory of the branch from the home office at cost is P234,000; the beginning inventory of the branch from outsiders is P38,000. Purchases from outsiders is P326,250. How much is the cost of goods available for sale of the branch?

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

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...

See similar textbooks

Similar questions

The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2019. The invoice cost was 85,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019, from a vendor to Ashwood were lost in transit. The invoice cost was 40,000. On January 5, 2020, Ashwood filed a 40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2019, from a vendor to Ashwood were received on January 6, 2020. The invoice cost was 20,000, What amount should Ashwood report as accounts payable on its December 31,2019, balance sheet? a. 1,260,000 b. 1,285,000 c. 1,325,000 d. 1,345,000
Cinnamon Buns Co. (CBC) started 2021 with $53,900 of merchandise on hand. During 2021, $288,000 in merchandise was purchased on account with credit terms of 3/10 n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $10,900. Merchandise with an invoice amount of $3,000 was returned for credit. Cost of goods sold for the year was $302,000. CBC uses a perpetual inventory system.Assuming CBC uses the gross method to record purchases, ending inventory would be:
The Company has a single branch in Southwest. On March 1, 2020, the home ofﬁce accounting records included an Allowance for Overvaluation of Inventories: Southwest Branch ledger account with a credit balance of $32,000. During March, the following transactions occurred: On March 4, the home office shipped merchandise costing $66,000 to the Southwest Branch and billed it at a price representing a 40% markup on the billed price.On March 8, the branch sold 70% of the merchandise received from the home office on march 4 for $90,000 cash.On March 15, the branch sold 20% of the merchandise received from the home office on march 4 to Hope company for $30,000 on credit.On March 22, the home office informed the branch that it had collected 50% of the amount owed by Hope company.On March 28, the branch paid operating expenses of $10,000 cash.On March 29, Hope company paid the remaining amount due to Southwest branch,On March 30, the home office allocated operating expenses of $4,000 to the…
Yahoo Company bills its Palawan branch at 140% of cost during 2020. Goods billed at P866,250 were shipped to Palawan branch. The account allowance for overvaluation has a balance of P306,000 before adjustment. The beginning inventory of the branch from the home office at cost is P234,000; the beginning inventory of the branch from outsiders is P38,000. Purchases from outsiders is P326,250. How much is the cost of goods available for sale of the branch?
Brave Company maintains a branch in Davao City and makes inventory shipment to its branch at 20% above cost. Selected balances taken from the books of Home Office and Branch as of December 31, 2021 are as follows (see image below). P24,350 of the branch’s ending inventory came from outside suppliers.1. How much is the Allowance for Overvaluation after adjustment?
Hola Corporation’s shipments to and from its Manila branch are billed at 125% of cost. On December 31, 2021, Manila branch reported the following data at billed price: Inventory January 1, P50,000; shipments received from home office, P1,000,000; shipments returned P100,000; and Inventory December 31, P300,000. The branch reported a net income of P250,000.How much is the adjusted branch net income?
The home office ships merchandise to the branch at 25 percent above cost. At whatamount should the Home Office account be credited if merchandise costing P120,000will be shipped? On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During theyear, Kit Inc. transfers cash and merchandise to the branch worth P15,000 andP45,000 respectively. Freight was paid by the home office worth P1,500 included inthe cost of merchandise. The home office also incurred P5,700 expenses of which 30percent was allocated to the branch. On December 31, 2020, the branch incurred aloss of P4,000. What is the balance of the branch account as per home office books? *Please answer in good Accounting form. Thank you!
Habiba Company has a single branch in Southwest. On March 1, 2020, the home ofﬁce accounting records included an Allowance for Overvaluation of Inventories: Southwest Branch ledger account with a credit balance of $32,000. During March, the following transactions occurred: On March 4, the home office shipped merchandise costing $66,000 to the Southwest Branch and billed it at a price representing a 40% markup on the billed price. On March 8, the branch sold 70% of the merchandise received from the home office on march 4 for $90,000 cash. On March 15, the branch sold 20% of the merchandise received from the home office on march 4 to Hope company for $30,000 on credit. On March 22, the home office informed the branch that it had collected 50% of the amount owed by Hope company. On March 28, the branch paid operating expenses of $10,000 cash. On March 29, Hope company paid the remaining amount due to Southwest branch, On March 30, the home office allocated operating expenses of $4,000…
Honesty Corporation’s shipments to and from its Quezon City branch are billed at 125% of cost. On December 31, 2021, QC branch reported the following data at billed price: Inventory January 1, P50,000; shipments received from home office, P1,000,000; shipments returned P100,000; and Inventory December 31, P300,000. The branch reported a net income of P250,000.How much is the adjusted branch net income?
The following transactions relating to branch SG and branch Popsters are the following: • On September 30, 2020, branch SG collected branch Popsters' accounts receivable of P80,000 less 3%discount. • On October 31, 2020, home office shipped merchandise costing P400,000 to branch SG. Freight of P6,000 was paid by the home office. It is the policy of the company to bill its branches at 25% above cost. • On November 30, 2020, upon the instruction of the home office, branch SG reshipped a quarter of the above merchandise to branch Popsters with freight of P3,000 (freight-collect). Had the goods been shipped directly to branch Popsters, the freight would have been only P1,400. What is the home office current account of branch SG as of October 31, 2020?
The SG Company has a branch in Bohol. During 2020, the home office shipped to the branch merchandise billed at P150,000 including a markup of 20% on cost. The branch reports opening and closing inventories of P90,000 and P120,000, respectively, while the home office has a closing inventories of P210,000 which includes merchandise which are held on consignment valued at P10,000. Both locations use the periodic inventory system. What closing inventory would be reported in the combined statement of income for the year 2020?
The home office bills shipments of merchandise to its branch at a markup of 20% basedon cost. At the beginning of the period, the “Allowance for markup” account has a creditbalance of ₱8,000. During the period, the home office made shipments of goods worth₱960,000, at cost. The branch reported an ending inventory of ₱480,000, at billed price.. How much is the realized mark-up?