HOBA

Question 1

Explain the format to use in solving HOBA Problems

Answer 1

Cost Billed AOI—> In one row
Beside the cost
BI
SHIPMENT (katapat ng cost ay STB always STB dito. Sa Billed naman ay SFHO (always SFHO dito)
GAS (ang makukuha mo dito) **kapag may given na AOI sa problem, sa GAS mo lang ilagay. sa dulo
EI
COGS

Question 2

Dalawa ang COGS ng Branch, explain how to compute?

Answer 2

If from OUTSIDE:
BI
PURCH
CGAS
(EI)
COGS

The other one:
SALES
COGS
GP
OPEX
NI

Question 3

How to compute combined NI in 2 ways?

Answer 3

NI (HO)
NI (BR)
REALIZED MUP — ito yung AOI in COGS
equals NI

or

BR:
SALES
COGS
OPEX
equals NI

Question 4

why Shipment to Branch is deducted to arrive at the COGS in HO?

Answer 4

Since overstated ang TGAS kapag hindi dineduct

Question 5

why ang SFHO ay inaadd to get the COGS in branch books?

Answer 5

Since magaunderstate ang TGAS

Question 6

Things to take note when solving HOBA?

Answer 6

Remember the in transit accounts shouldn’t be deducted in the inventory account