Use the following information for the next two questions: ABC Co. decided to open a branch in Manila. Shipments of merchandise to the branch totaled ₱54,000 which included a 20% mark-up on cost. The branch submitted the following report summarizing its operations for the period ended December 31, 20x1. Sales on account......... 74,000 Sales on cash basis........ 22,000 Collection of account....... 60,000 Expenses paid .......... 38,000 Expenses unpaid......... 17,000 Purchase of merchandise for cash........... 26,000 Inventory on hand, Dec. 31; 80% from home office....... 30,000 Remittance to home office.......... 55,000 Q1: How much is the branch’s ending inventory at cost? Q2: How much is the profit (loss) of the branch as far as the home office is concerned?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Use the following information for the next two questions:
ABC Co. decided to open a branch in Manila. Shipments of merchandise to the branch
totaled ₱54,000 which included a 20% mark-up on cost. The branch submitted the
following report summarizing its operations for the period ended December 31, 20x1.
Sales on account......... 74,000
Sales on cash basis........ 22,000
Collection of account....... 60,000
Expenses paid .......... 38,000
Expenses unpaid......... 17,000
Purchase of merchandise for cash........... 26,000
Inventory on hand, Dec. 31; 80% from home office....... 30,000
Remittance to home office.......... 55,000
Q1: How much is the branch’s ending inventory at cost?
Q2: How much is the
concerned?
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