Stainless Works Mfg. Co. consigned 5 dozens of stainless chairs to Urban Furniture Co. on April 1, 20x1. Each chair cost P120 and the consignor paid P600 for the shipment to the consignee. On August 15, 20x1, 36 were already sold and the consignee rendered an account sales, and remitted the balance due the consignor in the amount of P5,580 after deducting the following: Commission at 15% of the selling price Selling expenses P360 Delivery and installation 180 How much is Stainless Works Mfg. Co.'s profit on the consignment? 660 900 1,000 1,260

Stainless Works Mfg. Co. consigned 5 dozens of stainless chairs to Urban Furniture Co. on April 1, 20x1. Each chair cost P120 and the consignor paid P600 for the shipment to the consignee. On August 15, 20x1, 36 were already sold and the consignee rendered an account sales, and remitted the balance due the consignor in the amount of P5,580 after deducting the following: Commission at 15% of the selling price Selling expenses P360 Delivery and installation 180 How much is Stainless Works Mfg. Co.'s profit on the consignment? 660 900 1,000 1,260

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 9E: Williams Corporation had the following purchases for May: May 3Bought ten lawn rakes from Owens...

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Canary Lawnmowers sold 70 lawnmower parts at $5.00 per part to a customer on December 4 with a cost to Canary of $3.00 per part. Terms of the sale are 5/10, n/25, invoice dated December 4. The customer pays their account in full on December 16. On December 21, the customer discovers 22 of the parts are the wrong size but decides to keep them after Canary gives them an allowance of $1.00 per part. Record the journal entries to recognize these transactions for Canary Lawnmowers.
Record journal entries for the following transactions of Mason Suppliers. A. Sep. 8: Purchased 50 deluxe hammers at a cost of $95 each from a manufacturer. Credit terms are 5/20, n/60, invoice date September 8. B. Sep. 12: Mason Suppliers returned 8 hammers for a full refund. C. Sep. 16: Mason Suppliers found 4 defective hammers, but kept the merchandise for an allowance of $250. D. Sep. 28: Mason Suppliers paid their account in full with cash.
Canary Lawnmowers sold 75 lawnmower parts at $5.00 per part to a customer on December 4. The cost to Canary is $3.00 per part. Terms of the sale are 4/10, n/25, invoice dated December 4. The customer pays their account in full on December 16. On December 21, the customer discovers 22 of the parts are the wrong size, but decides to keep them after Canary gives them an allowance of $1.00 per part. Record the journal entries to recognize these transactions for Canary Lawnmowers.
MedLab Inc. consigned 4,800 medical equipment costing P90 and retailing for P3,000 each to ACC Co. Freight cost of P4,800 was paid as freight expenses by the consignor. After a month, MedLab received P213,030 in full settlement of the balance due. The consignor deducted a commission of P600 for each equipment sold, P270 for delivery expense and P300 for advertising expense. How many medical equipment were sold?
Philacor, Inc. consigned twelve refrigerators to Ocampo’s Emporium. The refrigerators cost P6,000 each and the consignor paid P720 for freight-out. The consignee rendered an account sales for the five units sold at P7,700 each, and deducted the following items from the selling price: Commission (based on sales net of commission) 10% Marketing expense (based on commission) 10% Delivery and installation (on each unit sold) P30 How much was the net profit of the consignor on the five refrigerators sold? How much was the net remittance of the consignee on the five refrigerators sold?
On May 1, RR Products Company ships five (5) of its appliances to SZ Company on consignment. The cost of the appliances shipped is 155 per unit. The consignor paid shipping costs totaling 50. Each unit is to be sold at 250 payable 50 in the month of purchase and P10 per month thereafter. The consignee is entitled to 20% of all amounts collected on consignment sales. SZ Company was able to sell 3 appliances in May and 1 in June. Regular monthly collections by the consignee, and appropriate cash remittances have been made to the consignor at the end of each month . 17. What is the total amount of remittance to consignor as of June? A. P-0- B. P184 C. P64 D. P200 18. How much is the profit on consignment? A. P150 B. P294 C. P140 D. None of the above 19. What is the cost of inventory on consignment? A. P155 B. P165 C. P245 D. None of the above Con
On July 1, 20x1, Lala Home Store shipped 150 ovens, costing P9,000 each on consignment basis to SM Aurato be sold at P15,000 each. The consignee is to be allowed a 15% commission. Lala Home Store incurredP15,000 in shipping the 150 units. The agreement requires that SM Aura will advance 50% of the cost of theoven, to be applied to periodic remittances in proportion to the units sold. Any expenses related to theconsigned units incurred by SM Aura are also deductible from the remittance. On October 31, 20x1, SM Aurarendered an account sale that includes the following deductions: Advertising costs, P15,000; deliveryexpenses to customers of P350 per unit; commission of P146,250.REQUIRED:6. Amount remitted to Lala Home Store ____________
BXY Co. has a branch, and all goods are sent thereto at cost plus 25%. The accounting is done at head office.In the first year, the branch received goods from head office costing K8,000. During the year the branch sent back to head office goods at internal invoice price of K500.Some of the goods sold to customers by the branch were unsatisfactory, and the customers complained and sent the goods in question, amounting to K50, direct to head office.During the year remittances to head office were K5,000; closing cash balance at branch K1,010, and closing branch debtors K2,340. The branch deals only with goods sent from head office. There are no discounts or bad debts and no stock differences. Ignore expenses.You are required to prepare the following accounts:a) Branch Stockb) Goods sent to branchc) Branch Adjustmentd) Branch Debtorse) Branch Cash.
A confectioner , a chain of candy stores , purchases its candy in bulk from its suppliers For a recent shipment , the company paid P4,000 and received 10, 500 pieces of candy that are allocated among three groups. Group 1 consists of 2,500 pieces that are expected to sell for PO.40 each. Group 2 consists of 6,000 pieces that are expected to sell. For P0.60 each . Group 3 consists of 2,000 pieces that are expected to sell is the cost for P0.70 each . Using the relative sales value method , what is the cost per item in group 3?
CSGNR Inc. purchased 100,000 units costing P1,000,000, and paid P10,000 freight for its shipment. After a day, the company consigned these goods to OIEE Inc. stating that the consignee is entitled to10% of the revenue from all sold units. The shipment from the consignor to the consignee amounted toP5,000 with payment terms freight collect. With a standard retail price of P19, the consignee remitted a total of P1,306,000. Other notable expenses paid by the consignee on the consignor’s behalf wereP12,000 advertising expense, P3,000 delivery charges to customers, P7,800 installation fee on the customer’s premises. How much was the cost of goods still out on consignment? A. 220,000 B. 221,100 C. 222,200 D. 223,300
Gloden Company operates a retail store in Faith, Hope, and Love. Golden Company’s corporate headquarters is located in Manila, and the company uses responsibility accounting to evaluate performance. The following information relates to the Faith facility:· The store sold 100,000 units at P20.00 each, after having purchased the units from various suppliers for P13. Faith salespeople are paid a 10% commission based on gross sales pesos.· Faith’s sales manager oversees the placement of local advertising contracts, which cost P88,000 and 5% of gross sales pesos. Local property taxes amounted to P15,000.· The sales manager’s P95,000 salary is set by Faith’s store manager. In contrast, the store manager’s P120,000 salary is determined by National Company’s vice president.· Faith incurred P20,000 of other noncontrollable costs along with P10,000 of income tax expense.· Nontraceable (common) corporate overhead totaled P68,000.The income that will be used to evaluate the manager of Faith…
Zonker Inc. purchases 500 units of an item at an invoicecost of $30,000. What is the cost per unit? If the goods areshipped f.o.b. shipping point and the freight bill was$1,500, what is the cost per unit if Zonker Inc. pays thefreight charges? If these items were bought on 2/10, n/30terms and the invoice and the freight bill were paid withinthe 10-day period, what would be the cost per unit?