Chapter12

Multiple choices-computational

12-1. The home office merchandise to the branch at 20 percent above cost. How should a shipment
costing P60,000 be recorded by the home office?
a. Investment in branch 60,000
Allowance for overvaluation of Br. Inv. 12,000
Shipment to branch 72,000
b. Investment in branch 72,000
Shipment to branch 72,000
c. Investment in branch 72,000
Allow. for overvaluation of Br. Inv. 12,000
Shipment to branch 60,000
d. Investment in branch 75,000
Allow. for overvaluation of Br. Inv. 15,000
Shipment to branch 60,000
12-2.
show The home office
a beginning ships merchandise
inventory of home officetomerchandise
its branch at of
2030,000
percentand
above cost. The
shipments branch's
from home books
office of
180,000. What is the balance before closing in the Allowance for Overvaluation of Branch Inventory
account?
a. P35,000
b. P36,000
c. P42,000
d. P52,000
12-3.
closingThe home
in the office ships merchandise
Intracompany to the
Inventory Profit branch
account at 25 percent
is 66,000 above cost.
and shipments fromIf Home
the balance
Officebefore
amounted to 300,000, what was the cost of the branch's beginning inventory?
a. P30,000
b. P24,000
c. P80,000
d. P96,000
12-4.
branchThe home
shows office shipsinventory
a beginning merchandise to the
of home branch
office at 50 percent
merchandise above cost.
amounting On itsand
to 15,000 books the
shipments
from home office of 110,000. Its ending inventory of home office merchandise is 5,000. What amount
should the home office adjust the allowance for overvaluation of branch inventory account.
a. P40 000
b. P55 000
c. P60 000
d. P62 500
12-5. PowerCorporation
bills inventory shipped
to its branches inventory
at 120 percenttoofitsoriginal
Bacolodcost,
branch,
plus costing 375amount
the actual 000 plus
offreight.
shippingPower
charges.
At the end of the year, the Bacolod branch had resold 5p percent of the inventory from the home office.
Shipping costs paid by Power were 2 000.
What amount should the inventory be reported in the branch's statement of financial position ?
a. P187 500
b. P188 500
c. P226 000
d. P377 000
12-6. Using
reported the statement
in the data in 12-5,
of at what amount
financial positionshould the branch's inventory
of PowerCorporation from?)the home office be
as a whole
a. P157 250
b. P188 500
c. P189 500
d. P377 000
12-7.
branchOro
hasCorporation
a balance inhas
its aHome
branch in Cebu.
Office The at
account branch reported
the end of the income of 130,000
year, after closing offor 2016.
765 The
00. Branch
income has not been recorded by Oro's home office . During the year, Oro shipped iventory to the
branch at a price of 160 000; Oro's original cost was 90 000. All but 45 percent of the inventory has been
resold to unrelated parties by year-end.
What is tha balance in Oro's Investment in Branch Account?
a. P594 500
b. P603 500
c. P635 000
d. 765 000