Home Office Branch Sales P 256,000 P 78,500 Purchases from outsiders 210,000 20,000 Shipments to branch: Cost to home office 30,000 Billing price to branch Expenses Inventories, January 1, 2008: 40,000 12,500 60,000 Home office acquired from outsiders, at cost 80,000 Branch: Acquired from outsiders, at cost Acquired from home office, at billed price 7,500 (which averaged 22 % above cost) 24,500 Inventories, December 31, 2008: Home Office, acquired from outsiders, at cost 55,000 Branch: Acquired from outsiders, at cost Acquired from home office, at 2008 billed price 5,500 26,000

Home Office Branch Sales P 256,000 P 78,500 Purchases from outsiders 210,000 20,000 Shipments to branch: Cost to home office 30,000 Billing price to branch Expenses Inventories, January 1, 2008: 40,000 12,500 60,000 Home office acquired from outsiders, at cost 80,000 Branch: Acquired from outsiders, at cost Acquired from home office, at billed price 7,500 (which averaged 22 % above cost) 24,500 Inventories, December 31, 2008: Home Office, acquired from outsiders, at cost 55,000 Branch: Acquired from outsiders, at cost Acquired from home office, at 2008 billed price 5,500 26,000

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter2: Asset And Liability Valuation And Income Recognition

Section: Chapter Questions

Problem 5QE

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