Luzon Company consigned 2,000 units of calculators, costing P800 each to Vis Company to be sold at P1,500 per unit. The agreement calls for 15% commission on units sold and any expenses paid by the consignee is reimbursable by the consignor. Luzon paid P40,000 freight and insurance of P20,000 for the shipment. At the end of the month, Vis remitted the amount due to the consignor after deducting commission of P360,000 and advertising costs of P50,000. Record shows that 250 units were left to the consignee and some units were returned to the consignor. BBB paid the cost of shipment of the returned units amounting to P20,000. 1.How much is the Consignment Income (Loss)? 2. how much is the Cash Remittance? 3. how much is the Ending Inventory?
Luzon Company consigned 2,000 units of calculators, costing P800 each to Vis Company to be sold at P1,500 per unit. The agreement calls for 15% commission on units sold and any expenses paid by the consignee is reimbursable by the consignor. Luzon paid P40,000 freight and insurance of P20,000 for the shipment. At the end of the month, Vis remitted the amount due to the consignor after deducting commission of P360,000 and advertising costs of P50,000. Record shows that 250 units were left to the consignee and some units were returned to the consignor. BBB paid the cost of shipment of the returned units amounting to P20,000.
1.How much is the Consignment Income (Loss)?
2. how much is the Cash Remittance?
3. how much is the Ending Inventory?
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