In December, the Millennial Publishing Company ships 20 sets of books to a book dealer on consignment. The consignor maintains a cost accounting system and perpetual inventories; the cost of manufacturing each set is P3,000. At the end of December, the dealer reports the sale of seven (7) sets at P5,000 each and remits the sales proceeds less 15% commissions and P1,500 for freight paid by the dealer on the receipt of the sets. Delivery and installation expense was P1,200. REQUIRED: 4. Amount remitted by the consignee ____________ 5. Net income recognized by consignor ____________
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
In December, the Millennial Publishing Company ships 20 sets of books to a book dealer on consignment.
The consignor maintains a cost accounting system and perpetual inventories; the cost of manufacturing each set is P3,000. At the end of December, the dealer reports the sale of seven (7) sets at P5,000 each and remits the sales proceeds less 15% commissions and P1,500 for freight paid by the dealer on the receipt of the sets. Delivery and installation expense was P1,200.
REQUIRED:
4. Amount remitted by the consignee ____________
5. Net income recognized by consignor ____________
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