Company manufacturers a product that is packaged and sold. A plate is offered to customers sending in three vrappers accompanied by a remittance of P10. Data with respect to the premium offer are summarized below. 2021 2022 ales urchase of premium, P50 per plate Tumber of plates distributed as premiums stimated number of plates to be 3,600,000 390,000 5,000 4,200,000 580,000 9,000
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- Xoiswa Company manufactures a product that is packaged and sold. A plate is offered to customers sending in three wrappers accompanied by a remittance of P10. Data with respect to the premium offer are summarized below: 2018 2019 Sales 3,600,000 4,200,000 Purchase of premium, P50 per plate 390,000 580,000 Number of plates distributed as premiums 5,000 9,000 Estimated number of plates to be distributed in next period 2,000 3,000 Distribution cost P20 per plate What is the premium expense for 2019?At the beginning of the current year, Clan Company offers the customers a pottery bowl if they send in three boxtops from the products and P10. The entity estimated that 60% of the boxtops would be redeemed.During the year, the entity sold 675,000 boxes and customers redeemed 330,000 boxtops receiving 110,000 bowls. The cost of each bowl is P 25.What is the liability for outstanding premium at year-end?On October 1, 2020, Win Company consigned 240 posters to JAA Inc. with original cost of P1,000 each. Win policy in setting its selling price is 160% mark-up on cost. Freight on shipment was paid by JAA Company for P12,000. Any costs incurred by the consignee in relation to the consigned goods are all reimbursable. On December 17, JAA Inc. submitted an account sales and remitted P230,400 after deducting 12% commissions, selling expense of P10,000 and any reimbursable cost. Assume further that 50% of the remaining posters were returned to Win incurring freight of P5,000. Half of the returned goods were lost during the shipment. How much is the total loss and/or expenses accounted by Win in relation to the consignment other than the Cost of Goods Sold? Determine the cost of ending inventory
- On October 1, 2020, Win Company consigned 240 posters to JAA Inc. with original cost of P1,000 each. Win policy in setting its selling price is 160% mark-up on cost. Freight on shipment was paid by JAA Company for P12,000. Any costs incurred by the consignee in relation to the consigned goods are all reimbursable. On December 17, JAA Inc. submitted an account sales and remitted P230,400 after deducting 12% commissions, selling expense of P10,000 and any reimbursable cost. How much is the net income?Show the complete solution. On August 31, 2020, JPM Co. consigned to Cute Co. ten ladies' handbags which cost JPM P200 each. JPM paid freight charges of P100 on the shipment. On September 30, 2020, Cute Co. submitted an account sales reporting that it sold for cash seven handbags for which it remitted P2,110 representing the net proceeds after deductions as follows: Commission 20% of sales price Advertising placed upon receipt of shipment P80 Total Delivery fee of units sold P501. Questions: 1. What is the gross profit of the consignor? 2. The Consignor realized a net income on the consignment amounting to? 3. The consignee sold the 7 handbags for a total of? 4. The consignee realized income from the sale of consigned handbags amounted to? 5.The inventory of unsold handbags at September 30, 2020 was valued at?On August 31, 2020, Lovely Co. consigned to Cute Co. ten ladies’ handbags which cost Lovely P200 each. Lovely paid freight charges of P100 on the shipment. On September 30, 2020, Cute Co. submitted an account sales reporting that it sold for cash seven handbags for which it remitted P2,110 representing the net proceeds after deductions as follows: Commission 20% of sales price Advertising placed upon receipt of shipment P80 Total Delivery fee of units sold P50 41. The consignee sold the 7 handbags for a total of? 42. What is the gross profit of the consignor? 43. The Consignor realized a net income on the consignment amounting to? 44. The Consignee realized income from the sale of consigned handbags amounted to? 45. The inventory of unsold handbags at September 30, 2020 was valued at?
- Topic: Premium Liability Problem 2-1 Miracle Company manufactures a product that is packaged and sold. A plate is offered to customers sending in three wrappers accompanied by a remittance of P10. Data with respect to the premium offer are summarized below. 2020 2021 Sales 3,600,000 4,200,000 Purchase of premium, P50 per plate 390,000 580,000 Number of plates distributed as premiums 5,000 9,000 Estimated number of plates to be distributed in subsequent period 2,000 3,000 Distribution cost P20 per plate Solve for the following amounts The Premium Premium Expense Premium LiabilitySanchez Co. enters into a contract to sell Product A and Product B on January 2, 20x5, for an upfront cash payment of 300,000. Product A will be delivered in 2 years (January 2, 20x7) and Product B will be delivered in 5 years (January 2, 2020). Sanchez Co. allocates the 300,000 to Products A and B on a relative standalone selling price basis as follows. Standalone Selling Price Percent Allocated Allocated Amount Product A 80,000 25% 75,000 Product B 240,000 75% 225,000 320,000 300,000 Sanchez Co. uses an interest rate of 6%, which is its incremental borrowing rate.INSTRUCTIONS1. (a) Prepare the journal entries necessary on January 2, 20x5, and December 31, 20x52. (b) Prepare the journal entries necessary on December 21, 20x6.3. (c) Prepare the journal entries necessary on January 2, 20x7On October 1, CLARK Co shipped 25 cameras to KENT Inc onconsignment. The cameras are to be sold at list price ofP20,000 each. The cost of each camera to the consignor isP10,000. The cost of shipment paid by the consignor was P7,500.The consignor agreed to absorb the consignee’s expenditure forfreight and also to allow the consignee P1,000 for delivery andinstallation for each set. Commission is to be 25% of the salesprice. On October 31, KENT submitted the following summary ofconsignment sales: Sets received 25Sets sold 8Sets returned to consignor(defective) 2 10Sets on hand 15 October 2-30 Sales, 8 cameras @ P20,000 P 160,000Charges: Freight-in P 5,000Deliveries and Installationexpenses 8,000 Commissions 40,000 53,000Total P 107,000Remittance 25,000Balance owed (collections fromcustomers not yet made) 82,000 What is the inventory value of the units unsold in the hands ofthe consignee?A. 150,000 C. 154,500B. 153,000 D. 157,500What is the profit of the consignor for the units sold?A.…
- On October 1, 2020, Popsters Company consigned 240 posters to AshMatt Inc. Popsters policy in setting its selling price is 160% mark-up on cost. Freight on shipment was paid by Popsters Company for P12,000. Any costs incurred by the consignee in relation to the consigned goods are all reimbursable. On December 17, AshMatt Inc. submitted an account sale stating that it had sold 40% of the total consigned units and AshMatt remitted P116,720 after deducting 12% commissions and selling expense of P10,000.1. The net income recognized by Popsters Company is2. Using the information above, and assuming that 20% of the consigned units were returned on 12/22 how much is the cost of ending inventory in the books of Popsters Company?Using the information above, and assuming that 20% of the consigned units were returned on December 22 (AshMatt incurred 5,000 shipping costs) and 50% of the goods returned were found obsolete when received by Popsters Company on December 24.3. How much is the cost of…On January 1, 2021, VVV Shop received from ABC 300 pieces of bread toasters. VVV was to sell these on consignment at 50% above original cost, for a 15% commission on the selling price. After selling 200 pieces, VVV had the remaining unsold units repaired for some electrical defects for which he spent P2,000. ABC subsequently increased the selling price of the remaining units to P330 per unit. On January 31, 2021, VVV remitted P64,980 to ABC after deducting the 15% commission, P850 for delivery expenses of sold units, and P2,000 for the repair of 100 units. The consigned goods cost ABC P200 per unit, and P900 had been paid to ship them to VVV Shop. All expenses in connection with the consignment were reimbursable to the consignee. Determine the value inventory to be presented in the statement of financial Position. Please provide a good accounting form for the solutionOn January 1, 2021, VVV Shop received from ABC 300 pieces of bread toasters. VVV was to sell these on consignment at 50% above original cost, for a 15% commission on the selling price. After selling 200 pieces, VVV had the remaining unsold units repaired for some electrical defects for which he spent P2,000. ABC subsequently increased the selling price of the remaining units to P330 per unit. On January 31, 2021, VVV remitted P64,980 to ABC after deducting the 15% commission, P850 for delivery expenses of sold units, and P2,000 for the repair of 100 units. The consigned goods cost ABC P200 per unit, and P900 had been paid to ship them to VVV Shop. All expenses in connection with the consignment were reimbursable to the consignee. Determine the value inventory to be presented in the statement of financial Position.
