Big Company consigned 1,000 units of ordinary printer, costing P700 each to a consignee to be sold at P1,200 per unit. The agreement calls for 20% commission on units sold and any expenses paid by the consignee is reimbursable by the consignor. Big paid P30,000 freight and insurance of P10,000 for the shipment. At the end of the month, the consignee remitted the amount due to the consignor after deducting commission of P204,000 and advertising costs of P35,000. Record shows that 120 units were left to the consignee and some units were returned to the consignor. Big paid the cost of shipment of the returned units amounting to P15,000. 1. How many units are sold? 2. how much is the Consignment Income (Loss)? 3. how much is the Cash Remittance?
Big Company consigned 1,000 units of ordinary printer, costing P700 each to a consignee to be sold at P1,200 per unit. The agreement calls for 20% commission on units sold and any expenses paid by the consignee is reimbursable by the consignor. Big paid P30,000 freight and insurance of P10,000 for the shipment. At the end of the month, the consignee remitted the amount due to the consignor after deducting commission of P204,000 and advertising costs of P35,000. Record shows that 120 units were left to the consignee and some units were returned to the consignor. Big paid the cost of shipment of the returned units amounting to P15,000.
1. How many units are sold?
2. how much is the Consignment Income (Loss)?
3. how much is the Cash Remittance?
4. how much is the cost of Inventory held by the consignee?
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How about the cost of inventory held by the consignee?
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