ABC Manufacturing Corp. consigned 10 refrigerators to XYZ Sales Company. These refrigerators had a cost of P180,000 each. Freight on the shipment was paid by QWE in the amount of P120,000. XYZ Sales Company submitted an account sales stating that it had sold 6 refrigerators and remitted the P1,365,000 balance due QWE after the following deductions from the selling price of the refrigerators: Commission (based on selling price)……………………………………… 15% Marketing expenses………………………………………………………….. P 90 Delivery and installation of items sold……………………………………. 60 Cartage cost paid upon receipt of consignment…………………….. 15 The consignor’s net profit from the sale of the consigned goods was?

ABC Manufacturing Corp. consigned 10 refrigerators to XYZ Sales Company. These refrigerators had a cost of P180,000 each. Freight on the shipment was paid by QWE in the amount of P120,000. XYZ Sales Company submitted an account sales stating that it had sold 6 refrigerators and remitted the P1,365,000 balance due QWE after the following deductions from the selling price of the refrigerators: Commission (based on selling price)……………………………………… 15% Marketing expenses………………………………………………………….. P 90 Delivery and installation of items sold……………………………………. 60 Cartage cost paid upon receipt of consignment…………………….. 15 The consignor’s net profit from the sale of the consigned goods was?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 7MCQ

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Philacor, Inc. consigned twelve refrigerators to Ocampo’s Emporium. The refrigerators cost P6,000 each and the consignor paid P720 for freight-out. The consignee rendered an account sales for the five units sold at P7,700 each, and deducted the following items from the selling price: Commission (based on sales net of commission) 10% Marketing expense (based on commission) 10% Delivery and installation (on each unit sold) P30 How much was the net profit of the consignor on the five refrigerators sold? How much was the net remittance of the consignee on the five refrigerators sold?
Bulldog Manufacturing Corp. consigned ten refrigerators to Poodles Sales Co. These refrigerators had a cost of P180 each. Freight on the shipment was paid by Bulldog in the amount of P120. Poodle Sales Co. submitted an account sales stating that it had sold six refrigerators and remitted the P1,365 balance due Bulldog after the following deductions from the selling price of the refrigerators: Commission 15% of selling price Marketing expenses P90 Delivery and installation of items sold P60 Cartage cost paid upon receipt of consignment P15 The consignee sold the 6 refrigerators for a total of? The commission earned on the sale of the 6 refrigerators by Central Sales Co. was? The consignor’s net profit from the sale of the consigned goods was?
SM Appliances consigned five electric fans, which cost P800,000 each, to Asahi Marketing Co., which was to sell them for a commission of 15% of selling price. Any accounts receivable arising from the sale of the consigned goods were to be the property of SM Appliances. SM paid trucking costs of P200,000. Asahi is to be reimbursed P170,000 for local delivery to customers. By December 31, Asahi Marketing had sold three of the fans, two for cash at P1,500,000 each and one on credit at P1,800,000, of which it had collected 25% as a down payment. The cash remittance to SM Appliance and the consignment profit are?
ABC Corp. consigned ten bags to DEF Company. These bags had a cost of P10,800 each. Freight on the shipments amounting to P7,200 was paid by ABC Corp. DEF submitted an account sales stating that it has sold six bags and remitted cash amounting P81,900 to ABC Corp. after deducting the following: Commission expense Selling expenses Delivery and installation of items sold Cartage cost upon receipt of consigned goods 10% of selling price 5,400 3,600 900 Requirements: Compute the following: 1. The total consignment sales 2. The commission earned on the sale of the six bags 3. The consignor net profit
The CC Manufacturing Company delivered ten DVD players to CLTV Company on consignment. These DVD player cost P3,000 each and are to be sold at P5,000 each. The CC Manufacturing Co. paid shipment cost of P2,500. CLTV Co. submitted an account sales stating that it had returned one unit and was remitting P21,900. This amount represents the total amount due to CC Manufacturing Co. after deducting the following from the selling price of the DVD player sold: Commission : 20% of selling price Advertising . . P1,000 Delivery and installation .... Cartage on consigned goods . P500 P600 The profit (loss) on consignment realized by CC Manufacturing Company is:
The CC Manufacturing Company delivered ten DVD players to CLTV Company on consignment. These DVD player cost P3,000 each and are to be sold at P5,000 each. The CC Manufacturing Co. paid shipment cost of P2,500. CLTV Co. submitted an account sales stating that it had returned one unit and was remitting P21,900. This amount represents the total amount due to CC Manufacturing Co. after deducting the following from the selling price of the DVD player sold: Commission : 20% of selling price Advertising . . . . P1,000 Delivery and installation .... P600 Cartage on consigned goods . P500 The cost of inventory in the hands of CLTV Company is:
Amianan Company consigned five calculators, with cost of P800 each, to the Bisdak Company which was to sell these goods for the account and ink of the former for a commission of 15% of selling price. Amianan Company paid shipping costs of P200 on the shipment. Correspondingly, Bisdak Company paid P320 on the freight of the shipment. On the last day of the year, Bisdak Company reported that it had sold three of the calculators, two for cash at P1,500 each and one on credit at P1,800, of which 25% was collected as down payment. Bisdak Company remitted all the cash due. 1. How much is the remittance of the consignee to the consignor?2. How much is the consignment profit?
A Co. consigned eight printing machines to B Co. Each machine costs ₱1,000,000 and has a suggested retail price of ₱2,100,000. Apaid ₱200,000 in transporting the machines to the consignee’s place of business. At the end of the period, B remitted ₱8,417,500 to A representing collections on sales during the period, after deducting the following: Commission (based on sales net of commission) 20% Finder’s fee (based on commission) 5% Delivery, installation and testing (on each unit sold) ₱50,000 Materials generated from the testing were sold for ₱5,000 and included in the remittance to A Co. JENCHULICHAENG Co. appropriately reported ending inventory of ₱3,075,000 for the unsold consigned machines. a. How much is the commission earned by the consignee? b. How much profit is earned by the consignor from the sale?
On October 1, CLARK Co shipped 25 cameras to KENT Inc on consignment. The cameras are to be sold at list price of P20,000 each. The cost of each camera to the consignor is P10,000. The cost of shipment paid by the consignor was P7,500. The consignor agreed to absorb the consignee’s expenditure for freight and also to allow the consignee P1,000 for delivery and installation for each set. Commission is to be 25% of the sales price. On October 31, KENT submitted the following summary of consignment sales: Sets received 25 Sets sold 8 Sets returned to consignor (defective) 2 10 Sets on hand 15 October 2-30 sales, 8 cameras@20,000 160,0000 Charges: Freight in 5,000 Deliveries and installation expenses 8,000 Commissions 40,000 53,000 Total 107,000 Remittance 25,000 Balance owed (collections from customers not yet made ) 82,000 What is the inventory value of the units unsold in the hands of the consignee?A. 150,000 C.…
On October 1, CLARK Co shipped 25 cameras to KENT Inc on consignment. The cameras are to be sold at list price of P20,000 each. The cost of each camera to the consignor is P10,000. The cost of shipment paid by the consignor was P7,500. The consignor agreed to absorb the consignee’s expenditure for freight and also to allow the consignee P1,000 for delivery and installation for each set. Commission is to be 25% of the sales price. On October 31, KENT submitted the following summary of consignment sales: Sets received 25 Sets sold 8 Sets returned to consignor (defective) 2 10 Sets on hand 15 October 2-30 sales, 8 cameras@20,000 160,0000 Charges: Freight in 5,000 Deliveries and installation expenses 8,000 Commissions 40,000 53,000 Total 107,000 Remittance 25,000 Balance owed (collections from customers not yet made ) 82,000 What is the profit of the consignor for the units sold?
MJ Company consigned five calculators, with cost of P800 each, to the JM Company which was to sell these goods for the account and ink of the former for a commission of 15% of selling price. The MJ Company paid shipping costs of P200 on the shipment. Correspondingly. JM Company paid P320 on the freight of the shipment. On the last day of the year, JM Company reported that it had sold three of the calculators, two for cash at P1,500 each and one on credit at P1,800, of which 25% was collected as down payment. JM Company remitted all the cash due. 6. The amount of cash remitted by JM Company is? 7. The consignment profit (loss) is? 8. The amount of inventory on consignment of MJ Company is? Thank you! Please answer complete
Aircon, Inc. consigned ten one-horsepower air conditioning units to Argy Trading and paid P2,000 for the freight. The consignee is allowed a commission of 5% on sales. Argy Trading submitted the following report at the end of the period: Sales (6 units) 72,000 Less: Advances to Aircon, Inc. 10,000 Selling expenses Installation and delivery 800 1,200 7,200 Commission 19,200 Net remittance 52,800 The selling expenses and the installation and delivery costs are chargeable to Aircon. Aircon consistently marks-up its inventories at a 12.50% gross profit rate based on sales price. This does not reflect any freight. How much is the cost of the inventory after the consignment sale?