Reference no: EM132675069
Partial list of accounts from the trial balances of the BERGER CO., BRANCH A, BRANCH B at December 31, 2019 are as follows:
Home Office BRANCH A BRANCH B
Inventory 1/1/2019 P 34,000 P 5,500 P 8,800
Branch A 100,000
Branch B 81,000
Purchases 500,000
Expenses 120,000 35,000 38,000
Shipment from HO 68,200 41,800
Home Office 94,000 75,000
Sales 500,000 150,000 120,000
Shipment to Branch A 73,700
Shipment to Branch B 46,200
Loading in Branch Invty,1/1/2019 1,300
Additional information:
- "SHIPMENT TO BRANCH" accounts were made at billed prices. Rate for mark-up on 2019 shipments were same as last year for both branch.
- There were shipments in transit at year end
- INVENTORY ON HAND on December 31, 2019
---Home Office-P31,000---BRANCH A-P 7,260;---BRANCH B-P 8,250.
Problem 1. Combined total cost of goods sold is:
Problem 2. The merchandise inventory on the combined balance sheet as of December 31,2019 would be:
Problem 3. How much is the total combined net income?