NEBRASKA Co. has two merchandise outlets, its main store in Anchorage and its Fairbanks branch. For control purposes, all purchases are made by Anchorage main store and shipped to Fairbanks branch at cost plus 10%. On January 1, 2018, the inventories in Anchorage and Fairbanks are $1,360 and $396, respectively. During 2018, Anchorage purchased merchandise costing $4,000 and shipped 40% of it to the branch. At Year Ended 2018, the following journal entry to prepare the books for the next accounting period was prepared: Sales 3,200 Inventory 484 Inventory 396 Shipments from main store 1,760 Expenses 1,048 Main Store 480 What is the amount of overvaluation that was realized from the branch sales?
NEBRASKA Co. has two merchandise outlets, its main store in Anchorage and its Fairbanks branch. For control purposes, all purchases are made by Anchorage main store and shipped to Fairbanks branch at cost plus 10%. On January 1, 2018, the inventories in Anchorage and Fairbanks are $1,360 and $396, respectively. During 2018, Anchorage purchased merchandise costing $4,000 and shipped 40% of it to the branch. At Year Ended 2018, the following journal entry to prepare the books for the next accounting period was prepared: Sales 3,200 Inventory 484 Inventory 396 Shipments from main store 1,760 Expenses 1,048 Main Store 480 What is the amount of overvaluation that was realized from the branch sales?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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NEBRASKA Co. has two merchandise outlets, its main store in Anchorage and its Fairbanks branch. For control purposes, all purchases are made by Anchorage main store and shipped to Fairbanks branch at cost plus 10%. On January 1, 2018, the inventories in Anchorage and Fairbanks are $1,360 and $396, respectively. During 2018, Anchorage purchased merchandise costing $4,000 and shipped 40% of it to the branch. At Year Ended 2018, the following
| Sales | 3,200 |
|
Inventory |
484 |
| Inventory | 396 |
| Shipments from main store | 1,760 |
| Expenses | 1,048 |
| Main Store | 480 |
What is the amount of overvaluation that was realized from the branch sales?
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