A, Inc. consigned ten one-horsepower air conditioning units to B Trading and paid ₱2,000 for the freight. The consignee is allowed a commission of 5% on sales. B Trading submitted the following report at the end of the period: Sales (6 units) 72,000 Less: Advances to A, Inc. 10,000 Selling expenses 800 Installation and delivery 1,200 Commission 7,200 19,200 Net remittance 52,800 The selling expenses and the installation and delivery costs are chargeable to A. A consistently marks-up its inventories at a 12.50% gross profit rate based on sales price. This does not reflect any freight. How much was A’s profit or loss on the consignment?

A, Inc. consigned ten one-horsepower air conditioning units to B Trading and paid ₱2,000 for the freight. The consignee is allowed a commission of 5% on sales. B Trading submitted the following report at the end of the period: Sales (6 units) 72,000 Less: Advances to A, Inc. 10,000 Selling expenses 800 Installation and delivery 1,200 Commission 7,200 19,200 Net remittance 52,800 The selling expenses and the installation and delivery costs are chargeable to A. A consistently marks-up its inventories at a 12.50% gross profit rate based on sales price. This does not reflect any freight. How much was A’s profit or loss on the consignment?

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

See similar textbooks

Similar questions

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
Ines Company consigned twenty five (25) calculators, with cost of P800 each, to Hola Company for a commission of 10% of selling price. Ines Company paid shipping costs of P1,000 on the shipment. Correspondingly, Hola Company paid P500 on the freight of the shipment. On the last day of the year, Hola Company reported that it had sold twenty (20) of the calculators, fifteen (15) for cash at P1,500 each and five (5) on credit at P1,800 each, of which 25% was collected as down payment. Hola Company incurred P650 for delivery of the sold units and remitted all the cash due. How much is the consignment profit?
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?
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?
On October 5, 2024, the Lalisa Trading Company consigned 48 computer units, costing P 8,000 each, to Jennie, Inc. The units were to be sold on either cash or credit basis at a commission of 15% of net sales. Lalisa paid freight of P 1,800 on the shipment. On November 11, Jennie received the goods. Sales were made as follows: · October 15 – 10 units for cash at P 13,000 each · October 28 – 12 units on account at P 14,000 each On October 31, 2024, collections on accounts amounted to P 95,000, and an allowance of P 2,000 was given to a charge customer for a defective unit. On November 15, 2024, Jennie made the proper remittance of cash received from customers. Required: 1. Determine the amount of remittance 2. Determine the consignment profit 3. Determine the cost of ending inventory on consignment
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?
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?
Big Company consigned 1,000 units of ordinary printer, costing P700 each to a consignee to be sold at P1,200 per unit. The agreement calls for 20% commission on units sold and any expenses paid by the consignee is reimbursable by the consignor. Big paid P30,000 freight and insurance of P10,000 for the shipment. At the end of the month, the consignee remitted the amount due to the consignor after deducting commission of P204,000 and advertising costs of P35,000. Record shows that 120 units were left to the consignee and some units were returned to the consignor. Big paid the cost of shipment of the returned units amounting to P15,000.1. How many units are sold? 2. how much is the Consignment Income (Loss)? 3. how much is the Cash Remittance? 4. how much is the cost of Inventory held by the consignee?
On November 30, 20x1, Northup Co. consigned 90 freezers to Watson Co. for sale at ₱1,600 each and paid ₱1,200in transportation costs. A report of sales was received on December 30, 20x1 from Watson reporting the sale of 20 freezers, together with a remittance that was net of the agreed 15% commission. How much, should Northup receive as remittance from Watson Co.
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?
INTEGRITY, Inc. consigned 1,000 units of ordinary printer, costing P700 each to PUP Co. to be sold at P1,200 per unit. The agreement calls for 20% commission on units sold and any expenses paid by the consignee is reimbursable by the consignor. INTEGRITY, Inc. paid P30,000 freight and insurance of P10,000 for the shipment. At the end of the month, PUP Co. remitted the amount due to the consignor after deducting commission of P204,000 and advertising costs of P35,000. Record shows that 120 units were left to the consignee and some units were returned to the consignor. INTEGRITY, Inc. paid the cost of shipment of the returned units amounting to P15,000. What is the proper amount of net income reported by the consignor?
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.…