Aircon, Inc. consigned ten one-horsepower air conditioning units to Argy Trading and paidP2,000 for the freight. The consignee is allowed a commission of 5% on sales. Argy Tradingsubmitted the following report at the end of the period:Sales (6 units)72,000Less: Advances to Aircon, Inc.10,000Selling expensesInstallation and delivery8001,2007,200Commission19,200Net remittance52,800The selling expenses and the installation and delivery costs are chargeable to Aircon. Airconconsistently marks-up its inventories at a 12.50% gross profit rate based on sales price. This doesnot reflect any freight. How much is the cost of the inventory after the consignment sale?

Consignment: It is a process wherein the goods are sent out by the owner to a person called agent…

Aircon, Inc. consigned ten one-horsepower air conditioning units to Argy Trading and paid P2,000 for the freight. The consignee is allowed a commission of 5% on sales. Argy Trading submitted the following report at the end of the period: Sales (6 units) Less: Advances to Aircon, Inc. Selling expenses Installation and delivery 72,000 10,000 800 1,200 Commission 7,200 19,200 Net remittance 52,800 The selling expenses and the installation and delivery costs are chargeable to Aircon. Aircon consistently marks-up its inventories at a 12.50% gross profit rate based on sales price. This does not reflect any freight. How much is the cost of the inventory after the consignment sale?

Aircon, Inc. consigned ten one-horsepower air conditioning units to Argy Trading and paid P2,000 for the freight. The consignee is allowed a commission of 5% on sales. Argy Trading submitted the following report at the end of the period: Sales (6 units) Less: Advances to Aircon, Inc. Selling expenses Installation and delivery 72,000 10,000 800 1,200 Commission 7,200 19,200 Net remittance 52,800 The selling expenses and the installation and delivery costs are chargeable to Aircon. Aircon consistently marks-up its inventories at a 12.50% gross profit rate based on sales price. This does not reflect any freight. How much is the cost of the inventory after the consignment sale?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Show the solution in good accounting form
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