Solution-What is the rate of mark up on cost

What is the rate of mark up on cost

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Reference no: EM133017166

Problem - The following account balances was taken from the books and records of Bulacan Company and its branch on Dec 31, 2015:

	Investment in Branch (Home Office Books)	Home Office Current (Branch Books)
Sales	552,000	480,000
Shipments to branch	360,000
Merch inv, Jan 1	57,600
Purchases	720,000	144,000
Shipments from home office		450,000
Allowance for overvaluation of brach inv	94,800
Merch inv, end	67,200	49,680

The ending inventory of the branch contains 20,880 acquires from outsiders.

Required -

A. What is the rate of mark up on cost that the home office uses to bill merchandise to the branch?

B. The beginning inventory of the branch acquired from home office at billed price is?

C. The realized profit from overvaluation of branch inventory at Dec 31 is?

Reference no: EM133017166

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What is the rate of mark up on cost

Reference no: EM133017166

Reference no: EM133017166

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