The document provides trial balance information for the home office and branch of Katherine Company as of December 31, 2021. It shows the home office supplies merchandise to the branch at a billing rate of 120% of cost. The branch's beginning inventory of $15,000 consisted of $7,500 of goods from the home office and $2,500 from outside suppliers. The combined net income for both the home office and branch was $24,600.
The document provides trial balance information for the home office and branch of Katherine Company as of December 31, 2021. It shows the home office supplies merchandise to the branch at a billing rate of 120% of cost. The branch's beginning inventory of $15,000 consisted of $7,500 of goods from the home office and $2,500 from outside suppliers. The combined net income for both the home office and branch was $24,600.
The document provides trial balance information for the home office and branch of Katherine Company as of December 31, 2021. It shows the home office supplies merchandise to the branch at a billing rate of 120% of cost. The branch's beginning inventory of $15,000 consisted of $7,500 of goods from the home office and $2,500 from outside suppliers. The combined net income for both the home office and branch was $24,600.
The document provides trial balance information for the home office and branch of Katherine Company as of December 31, 2021. It shows the home office supplies merchandise to the branch at a billing rate of 120% of cost. The branch's beginning inventory of $15,000 consisted of $7,500 of goods from the home office and $2,500 from outside suppliers. The combined net income for both the home office and branch was $24,600.
1. Selected information from the trial balances of the home office and the branch of Katherine Company on December 31, 2021 is provided. The branch acquires merchandise from the home office and outside suppliers. Home Office Branch Sales P60,000 P30,000 Shipments to branch 8,000 Allowance for overvaluation of branch inventory 3,600 Shipments from home office 10,000 Purchase (outsiders) 35,000 5,500 Merchandise inventory 12/01/2021 20,000 15,000 Expenses 14,000 6,000
Additional information:
Merchandise inventory, December 31, 2021:
Home office P20,000
Branch (P7,500 from home office and P2,500 from outsiders) 10,000
Question 1: The billing rate of home office to branch for merchandise shipments is a. 120% of cost b. 125% of cost c. 130% of cost d. 135% of cost
Question 2: How much of the December 1 inventory of the branch represent purchases from outsiders and goods shipped from home office a. Home office, P5,000 and Outsiders, P10,000 b. Home office, P15,000 and Outsiders, P00,000 c. Home office, P8,000 and Outsiders, P7,000 d. Home office, P12,000 and Outsiders, P3,000
Question 3: The net income reported by the branch is a. P4,500 b. P5,600 c. P3,500 d. P2,500
Question 4: The combined net income for Home office and branch operations is a. P22,500 b. P24,600 c. P25,100 d. P21,500
