Compute the realized gross profit for the month of september

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Question - The home office of Glendale Company, which uses the perpetual inventory system, bills shipments of merchandise to the Montrose Branch at a markup of 25% on the billed price. On August 31, 2016, the credit balance of the home office's Allowance for Overvaluation of Inventories - Montrose Branch ledger account was P60,000. On September 17, 2016, the home office shipped merchandise to the branch at a billed price of P400,000. The branch reported an ending inventory, at billed price, of P160,000 on September 31, 2016. Compute the realized gross profit for the month of September 2016?

Reference no: EM133138766

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