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Rizal Co. consigns 30 hardware products to Bonifacio Co. on January 1, 20x1. The unit cost per hardware product is P8,000. Rizal pays P3,000 in transporting the hardware product to Bonifacio Co. At month-end, Bonifacio remits P230,000 for the sale of 14 hardware products, after deducting the following:   15% commission based on selling price Freight out P20,000 Installation costs 6,000   REQUIRED: Net income recognized by Rizal Co. on the consignment Carrying amount of inventory to be reported in Rizal’s balance sheet

Rizal Co. consigns 30 hardware products to Bonifacio Co. on January 1, 20x1. The unit cost per hardware product is P8,000. Rizal pays P3,000 in transporting the hardware product to Bonifacio Co. At month-end, Bonifacio remits P230,000 for the sale of 14 hardware products, after deducting the following:   15% commission based on selling price Freight out P20,000 Installation costs 6,000   REQUIRED: Net income recognized by Rizal Co. on the consignment Carrying amount of inventory to be reported in Rizal’s balance sheet

EBK CFIN
EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter15: Managing Short-term Assets
Section: Chapter Questions
Problem 19PROB
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Rizal Co. consigns 30 hardware products to Bonifacio Co. on January 1, 20x1. The unit cost per hardware product is P8,000. Rizal pays P3,000 in transporting the hardware product to Bonifacio Co. At month-end, Bonifacio remits P230,000 for the sale of 14 hardware products, after deducting the following:

 

15% commission based on selling price

Freight out

P20,000

Installation costs

6,000

 

REQUIRED:

  1. Net income recognized by Rizal Co. on the consignment
  2. Carrying amount of inventory to be reported in Rizal’s balance sheet
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