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Question - Batangas (HO) company transfer inventory to its Laguna Branch at 120% above cost. During 2019, the reciprocal account in the income statement of Laguna amounts to P825,000. The branch's balance sheet at the beginning of the year shows the balance of inventory at billed price of P 384,000, P 330,000 of which came from the HO. Purchases from outsider during the amounted to P194,000, 45% of which remain unsold as of year-end. The HO debited its deferred profit account in the amount of P464,400 at year-end.
Required -
1. How Much Is The Ending Inventory Per Branch Books?
2. How Much Is The True Cost Of Sales Of The Branch?
3. How Much Is The Deferred Profit Account In Books Of Home Office?
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