A Consignor shipped 100 units of its inventories to the consignee on consignment. Each unit costs P450 and has a standard retail price of P750. The 100 units had a freight-in charge of P3,750. After a month, the consignee returned 10 units of inventory and remitted P32,850 to the consignor with an account sales with the following items included: Commission of 20% Cartage on consigned goods, P750 Marketing expenses, P1,500 Delivery to customer and installation, P900. 1. How many units were sold by the consignee? 2. How much is the cost of inventory still on consignment at the end of the month? 3. How much is the total consignment profit (loss) by the consignor?
A Consignor shipped 100 units of its inventories to the consignee on consignment. Each unit costs P450 and has a standard retail price of P750. The 100 units had a freight-in charge of P3,750. After a month, the consignee returned 10 units of inventory and remitted P32,850 to the consignor with an account sales with the following items included: Commission of 20% Cartage on consigned goods, P750 Marketing expenses, P1,500 Delivery to customer and installation, P900. 1. How many units were sold by the consignee? 2. How much is the cost of inventory still on consignment at the end of the month? 3. How much is the total consignment profit (loss) by the consignor?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A Consignor shipped 100 units of its inventories to the consignee on consignment. Each unit costs P450 and has a standard retail price of P750. The 100 units had a freight-in charge of P3,750. After a month, the consignee returned 10 units of inventory and remitted P32,850 to the consignor with an account sales with the following items included:
- Commission of 20%
- Cartage on consigned goods, P750
- Marketing expenses, P1,500
- Delivery to customer and installation, P900.
1. How many units were sold by the consignee?
2. How much is the cost of inventory still on consignment at the end of the month?
3. How much is the total consignment
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