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  • Activity 2 - Assignment (Answer)

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    1. The home office reported total income of $76,000 with inventory costs of $46,000 and $64,000 at the beginning and end of the period. 2. The branch reported gross profit of $55,940 with beginning inventory of $20,600 and ending inventory of $24,140. 3. Combined, the home office and branch had a total income of $76,000 + $55,940 = $131,940.

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    1. The home office reported total income of $76,000 with inventory costs of $46,000 and $64,000 at the beginning and end of the period. 2. The branch reported gross profit of $55,940 with beginning inventory of $20,600 and ending inventory of $24,140. 3. Combined, the home office and branch had a total income of $76,000 + $55,940 = $131,940.

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    2 views1 page

    Activity 2 - Assignment (Answer)

    Uploaded by

    karmaude
    1. The home office reported total income of $76,000 with inventory costs of $46,000 and $64,000 at the beginning and end of the period. 2. The branch reported gross profit of $55,940 with beginning inventory of $20,600 and ending inventory of $24,140. 3. Combined, the home office and branch had a total income of $76,000 + $55,940 = $131,940.

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    © All Rights Reserved
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    of 1

    1

    )
    . Sale (310000 + 280
    - 000) 590 000 2 .
    )
    Less : (O6S a .

    Inventory ,
    Jan I .
    67100 Sales 110 000

    Purchases 380 000 Less : COGS

    Freight in ((209, 000 11000) + x5 %) 11 000 Inventory ,


    . I
    Jan 16 000

    TGAS 458 100 Purchases 80 000

    Less : Inventory Dec 31 104 000 (24 000)


    , .

    shipments to branch

    Freight in
    [(33000 11000) + +5 % ] 2200 351900 TGAS 72 000

    Gross profit 238100 Inventory ,


    Dec . 31 (20000) 52 000

    Less : Expenses (104, 000 + 58100) (162100) Gross Profit 58 000


    Combined Total Income 76 000 Less : 10 000
    Expenses
    Net Income 48 000

    . I
    Jan . 31
    Dec

    Home office ,
    at cost 46 000 64 008

    Branch
    ,
    at cost b .
    Sales (110000 + 37408) 147 400

    Inventory ,
    Jan I . (23100 -

    2000 21 100 Less : COGS

    Inventory, Dec. 31 (33000 + 11000) /110% ] 40 OO Inventory Jan I , .


    20 600

    Total 67108 104 000 Purchases 82 000

    TGAS 102600

    shipments from HO 209 000 Inventory, Dec 31 . (24140) 78460

    shipments in transit 1 000 Gross profit 68940

    Total 220 000 Less: Expenses (10, 000 + 3000 13 000

    Divide : Shipments to Branch 200 000 Combined Total Income 55940

    Percentage 110 %

    AFOBI
    -
    from beginning Inv 22 000 Jan I
    ,
    Inventory , 16 000

    Overvaluation (220000 200000


    - -
    -
    20 000
    Inventory from outsiders 600 Billed price 110 100

    Markup
    shipments 2000 Total 16 600 Cost 108 96

    Inventory from HO (4400 + )


    110 % 4000 MU 10 10

    Total beg
    . Inv .
    20 600

    Inventory ,
    Dec 31 . 20 000

    Inventory from outsiders 540

    Total 20 540

    Inventory from H0 (3960 + 110 %) 3 600

    Total beg Inv 24 140


    . .

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