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Question - The Chivas Regal owns the Royal Crown in Quezon City and a branch in Davao City. During 2016, the home office shipped to the branch supplies costing P120,000 at a billed price of 20% above cost. The inventories of supplies at the branch were as follows: January 1 - P90,000; December 31 - P108,000. On December 31, 2016, the home office holds inventories of P160,500, which includes P10,500 held in consignment. Both locations use the periodic inventory method.
Required - How much inventories should be reported in the combined balance shee as of December 31, 2016?
a. 210,000
b. 240,000
c. 270,000
d. 300,000
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