May I ask for help with this question. Thank you! (The following solutions below are additional solutions I've done to compute for the answer.) (Refer to the photo for the problem) The profit/loss on consignment on underwear: Remittance 7,500 Charges by consignor Cost (7,680 x 30/38) 4,800 Freight and handling (2,000 x 30/48) 1,250 Freight by consignee 150 6,200 Net Income 1,300 The cost of the inventory in the hands of the consignee: T - Shirts Costs (7,680 x 18/48) 2,880 Freight and handling (2,000 x 18/48) 750 Baby dresses Cost (4,800x4/24) 800 Freight and handling (1,080x4/24) 180 980 4,610 Disregard the computation of amount remitted. REQUIRED: COMPUTE FOR THE CONSIGNMENT PROFIT The consignment out account of Jackie Department Store is shown below: CONSIGNMENT OUT For goods shipped to consigner: For account sales by consigner: Cost of 24pcs. boys' clothes P4,800 20 pcs. boys' clothes P6,300 Cost of 48pcs. underwear 7,680 30 pcs. underwear 7,500 Freight and handling costs: Boys' clothes 1,080 Underwear 2,000 The commission on both types o goods was 15% of the selling price. All of the account sale were accompanied by checks for correct amounts. There is one account sale on hand which had not been recorded on the books of Jackie. It shows that no consigned goods had been sold but the freight and handling costs of P150 applicable to underwear had been incurred by the consignee.

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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May I ask for help with this question. Thank you! (The following solutions below are additional solutions I've done to compute for the answer.) (Refer to the photo for the problem)

The profit/loss on consignment on underwear:

Remittance		7,500
Charges by consignor
Cost (7,680 x 30/38)	4,800
Freight and handling (2,000 x 30/48)	1,250
Freight by consignee	150	6,200
Net Income		1,300

The cost of the inventory in the hands of the consignee:

T - Shirts
Costs (7,680 x 18/48)	2,880
Freight and handling (2,000 x 18/48)	750
Baby dresses
Cost (4,800x4/24)	800
Freight and handling (1,080x4/24)	180	980
		4,610

Disregard the computation of amount remitted. REQUIRED: COMPUTE FOR THE CONSIGNMENT PROFIT

The consignment out account of Jackie Department Store is shown below:

CONSIGNMENT OUT

For goods shipped to consigner:		For account sales by consigner:
Cost of 24pcs. boys' clothes	P4,800	20 pcs. boys' clothes	P6,300
Cost of 48pcs. underwear	7,680	30 pcs. underwear	7,500
Freight and handling costs:
Boys' clothes	1,080
Underwear	2,000

The commission on both types o goods was 15% of the selling price. All of the account sale were accompanied by checks for correct amounts. There is one account sale on hand which had
not been recorded on the books of Jackie. It shows that no consigned goods had been sold but the freight and handling costs of P150 applicable to underwear had been incurred by the consignee.

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