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  • Problem Set On Hoba Part 2

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    Angela Marie Penaranda
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    The document contains calculations for cost of goods sold, ending inventory, and branch profit for three problems. For Problem 1, it calculates the cost of goods sold as ₱258,750 based on beginning inventory, shipments from the home office and outside suppliers, and ending inventory. For Problem 2, it calculates an allowance for overvaluation of branch inventory of ₱211,250 based on shipments from the home office at billed and cost prices. For Problem 3, it calculates the true profit of the branch as ₱42,000 based on sales, cost of goods sold using the shipment cost, and operating expenses.

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    problem set on hoba part 2

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    The document contains calculations for cost of goods sold, ending inventory, and branch profit for three problems. For Problem 1, it calculates the cost of goods sold as ₱258,750 based on beginning inventory, shipments from the home office and outside suppliers, and ending inventory. For Problem 2, it calculates an allowance for overvaluation of branch inventory of ₱211,250 based on shipments from the home office at billed and cost prices. For Problem 3, it calculates the true profit of the branch as ₱42,000 based on sales, cost of goods sold using the shipment cost, and operating expenses.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    6 views1 page

    Problem Set On Hoba Part 2

    Uploaded by

    Angela Marie Penaranda
    The document contains calculations for cost of goods sold, ending inventory, and branch profit for three problems. For Problem 1, it calculates the cost of goods sold as ₱258,750 based on beginning inventory, shipments from the home office and outside suppliers, and ending inventory. For Problem 2, it calculates an allowance for overvaluation of branch inventory of ₱211,250 based on shipments from the home office at billed and cost prices. For Problem 3, it calculates the true profit of the branch as ₱42,000 based on sales, cost of goods sold using the shipment cost, and operating expenses.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    PROBLEM 1

    1.
    Shipments from Home Office at billed price ₱ 300,000.00
    Additional shipments 120,000.00
    Returns to Home Office (7,500.00)
    Total shipments from Home Office at billed price ₱ 412,500.00
    Divided by 120%
    Shipments from Home Office at cost ₱ 343,750.00
    Purchases from outside suppliers 72,500.00
    Total goods available for sale ₱ 416,250.00
    Ending inventory of Shipment from Home Office at cost (137,500.00)
    Ending inventory of purchases from outside suppliers (20,000.00)
    Total amount of Cost of Goods Sold ₱ 258,750.00

    2.
    Ending inventory from Home Office at billed price ₱ 165,000.00
    Divided by 120%
    ₱ 137,500.00
    Multiplied by 20%
    Unrealized mark-up on ending inventory ₱ 27,500.00

    PROBLEM 2
    1.
    At billed price
    Beginning inventory ₱ 56,250.00
    Shipments from Home Office 1,156,250.00
    Shipments returned (156,250.00)
    Total shipments from Home Office at billed price ₱ 1,056,250.00
    Less: Shipments at cost
    (₱1,056,250 / 125%) 845,000.00
    Allowance for Overvaluation of Branch Inventory ₱ 211,250.00

    PROBLEM 3
    1.
    Sales ₱ 141,000.00
    Cost of Sales (₱120,000 x 3/4) (90,000.00)
    Gross Profit ₱ 51,000.00
    Operating expenses (27,000.00)
    Individual profit of the branch ₱ 24,000.00

    2.
    Sales ₱ 141,000.00
    Cost of Sales (at cost) (72,000.00)
    Gross Profit ₱ 69,000.00
    Operating expenses (27,000.00)
    True profit of the branch ₱ 42,000.00

    Supporting computation:
    Shipments from Home Office at billed price ₱ 120,000.00
    Divided by 125%
    Shipments from Home Office at cost ₱ 96,000.00
    Multiplied by: Portion sold 3/4
    Cost of Sales ₱ 72,000.00

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