On January 1, 20x1, Pete Electrical Shop received from Marion Trading 300 pieces of bread toasters. Pete was to sell these on consignment at 50% above original cost, for a 15% commission on the selling price. After selling 200 pieces, Pete had the remaining unsold units repaired for some electrical defects for which he spent P2,000. Marion subsequently increased the selling price of the remaining units to P330 per unit. On January 31, 20x1, Pete remitted P64,980 to Marion after deducting the 15% commission, P850 for delivery expenses of sold units, and P2,000 for the repair of 100 units. The consigned goods cost Marion Trading P200 per unit, and P900 had been paid to ship them to Pete Electrical Shop. All expenses in connection with the consignment were reimbursable to the consignee. Determine the value inventory to be presented in the statement of financial position.
On January 1, 20x1, Pete Electrical Shop received from Marion Trading 300 pieces of bread toasters. Pete was to sell these on consignment at 50% above original cost, for a 15% commission on the selling price. After selling 200 pieces, Pete had the remaining unsold units repaired for some electrical defects for which he spent P2,000. Marion subsequently increased the selling price of the remaining units to P330 per unit. On January 31, 20x1, Pete remitted P64,980 to Marion after deducting the 15% commission, P850 for delivery expenses of sold units, and P2,000 for the repair of 100 units. The consigned goods cost Marion Trading P200 per unit, and P900 had been paid to ship them to Pete Electrical Shop. All expenses in connection with the consignment were reimbursable to the consignee. Determine the value inventory to be presented in the statement of financial position.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 20x1, Pete Electrical Shop received from Marion Trading 300 pieces of bread
toasters. Pete was to sell these on consignment at 50% above original cost, for a 15%
commission on the selling price. After selling 200 pieces, Pete had the remaining unsold
units repaired for some electrical defects for which he spent P2,000. Marion subsequently
increased the selling price of the remaining units to P330 per unit. On January 31, 20x1,
Pete remitted P64,980 to Marion after deducting the 15% commission, P850 for delivery
expenses of sold units, and P2,000 for the repair of 100 units. The consigned goods cost
Marion Trading P200 per unit, and P900 had been paid to ship them to Pete Electrical
Shop. All expenses in connection with the consignment were reimbursable to the
consignee. Determine the value inventory to be presented in the statement of financial
position.
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