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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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