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?