Solution-Which transfers resulted to difference in freight

Which transfers resulted to difference in freight charge

Reference no: EM132756790

Video and Company has several branches located in the cities in the south namely, Dipolog, Dumaguete, Cebu, Bacolod, and Cagayan de Oro. It authorizes transfers of cash and inventories among branches. The head office ships goods P10,000 cost to Dipolog branch paying freight charges for P600. The home office authorizes the transfer of goods from Dipolog Branch to Cebu Branch where the latter is charged for the cost of the goods, P10,000 and freight charges of P200 for the transfer.

Problem 1: If the shipment had been made by the head office to the Cebu Branch, the freight charges would have been P9,000. The transfers resulted to difference in freight charge which should be disposed of as follows:

a. P1,000 charge to Cebu branch by Dipolog branch.
b. P1,000 charge to Cebu branch by Head Office.
c.P1,000 to be equally charge among Head office, Dipolog branch, and Cebu branch.
d.P1,000 savings.

Reference no: EM132756790

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Which transfers resulted to difference in freight charge

Reference no: EM132756790

Reference no: EM132756790

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