Both question are from the same problem 4. The net income recognized by Birdbox company on this arrangement is:P26,720a. P21,920b. P14,720с.d. NOT GIVEN5. Assuming that 20% of the consigned goods in the above problem were returned onDecember 22 (Olympia incurred 5,000 shipping costs) and 50% of the goodsreturned were found obsolete when received by Birdbox on Dec 24, how much isthe cost of ending inventory in the books of Birdbox company?a. P135,000b. P119,700P117,300P94,800с.d. On October 1, 2019, Birdbox Company consigned 240 posters to Olympia Inc. Thepolicy of the company in setting prices is 60% mark-up on cost. Freight onshipment was paid by Birdbox Company for P12,000. Any costs incurred by theconsignee in relation to the consigned goods are all reimbursable. On October 17,Olympia Inc. submitted an account sales that it had sold 40% of the total consignedgods and that it sold 40% of the total consigned units and it remitted P116,720after deducting 12%s and selling expenses of P10,000.

Consignment accounting refers to a situation when the consignor sends goods to consignee and the…

On October 1, 2019, Birdbox Company consigned 240 posters to Olympia Inc. The policy of the company in setting prices is 60% mark-up on cost. Freight on shipment was paid by Birdbox Company for P12,000. Any costs incurred by the consignee in relation to the consigned goods are all reimbursable. On October 17, Olympia Inc. submitted an account sales that it had sold 40% of the total consigned gods and that it sold 40% of the total consigned units and it remitted P116,720 after deducting 12%s and selling expenses of P10,000.

On October 1, 2019, Birdbox Company consigned 240 posters to Olympia Inc. The policy of the company in setting prices is 60% mark-up on cost. Freight on shipment was paid by Birdbox Company for P12,000. Any costs incurred by the consignee in relation to the consigned goods are all reimbursable. On October 17, Olympia Inc. submitted an account sales that it had sold 40% of the total consigned gods and that it sold 40% of the total consigned units and it remitted P116,720 after deducting 12%s and selling expenses of P10,000.

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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