09-18-2010, 01:49 AM
please solve this question.
The Branch of Ilsa Company is billed for merchandise by the home office at 20% above cost.The branch in turn prices merchandise for sales purpose at 25% above billed price.On January 17 all of the branch merchandise is destroyed by fire.No insurance was maintained. Branch accounts show the following information.
open. inventory Jan 1 ( at billed price) Rs26400
shipment from head office(Jan 17) 20000
sales 15000
sales return 2000
sales Allowances 1000
What was the cost of merchandise destroyed?
The Branch of Ilsa Company is billed for merchandise by the home office at 20% above cost.The branch in turn prices merchandise for sales purpose at 25% above billed price.On January 17 all of the branch merchandise is destroyed by fire.No insurance was maintained. Branch accounts show the following information.
open. inventory Jan 1 ( at billed price) Rs26400
shipment from head office(Jan 17) 20000
sales 15000
sales return 2000
sales Allowances 1000
What was the cost of merchandise destroyed?
