On October 1, 2020, Popsters Company consigned 240 posters to AshMatt Inc. Popsters policy in setting its selling price is 160% mark-up on cost. Freight on shipment was paid by Popsters Company for P12,000. Any costs incurred by the consignee in relation to the consigned goods are all reimbursable. On December 17, AshMatt Inc. submitted an account sale stating that it had sold 40% of the total consigned units and AshMatt remitted P116,720 after deducting 12% commissions and selling expense of P10,000. 1. The net income recognized by Popsters Company is 2. Using the information above, and assuming that 20% of the consigned units were returned on
On October 1, 2020, Popsters Company consigned 240 posters to AshMatt Inc. Popsters policy in setting
its selling price is 160% mark-up on cost. Freight on shipment was paid by Popsters Company for P12,000.
Any costs incurred by the consignee in relation to the consigned goods are all reimbursable. On December
17, AshMatt Inc. submitted an account sale stating that it had sold 40% of the total consigned units and
AshMatt remitted P116,720 after deducting 12% commissions and selling expense of P10,000.
1. The net income recognized by Popsters Company is
2. Using the information above, and assuming that 20% of the consigned units were returned on
12/22 how much is the cost of ending inventory in the books of Popsters Company?
Using the information above, and assuming that 20% of the consigned units were returned on December
22 (AshMatt incurred 5,000 shipping costs) and 50% of the goods returned were found obsolete when
received by Popsters Company on December 24.
3. How much is the cost of ending inventory in the books of Popsters Company?
4. Compute the total expenses accounted other than those included in the cost of goods sold on
12/17.
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