On October 20, 20x1, ABC Company consigned 50 Laptops to DEF Company costing P16,000 each for saleand paid P60,000 in transportation costs. On December 30, 20x1, DEF reported the sale of 10 Laptops andremitted P252,000. The remittance was net of the agreed 10% commission.1. What amount should ABC recognize as consignment sales revenue for 20x1?2. How much is the net profit from consignment contract for 20x1?

Transportation cost per laptop = total Transportation cost / no. of laptop = 60000/50 = 1200

Answered: On October 20, 20x1l, ABC Company…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter5: Activity-based Costing And Management

Section: Chapter Questions

Problem 13MCQ

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