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On October 1, Claire Corp. shipped 25 cameras to Thor Inc. on consignment. The cameras are to be sold at list price of P20,000 each. The cost of each camera to the consignor is P10,000. The cost of shipment paid by the consignor was P7,500. The consignor agreed to absorb the consignee's expenditure for freight and also to allow the consignee P1,000 for delivery and installation for each set. Commission is to be 25% of the sales price. On October 31, Thor submitted the following summary of consignment sales: Sets received 25 Sets sold 8 Sets returned to consignor (defective) 2 10 Sets on hand 15 October 2-30 Sales, 8 cameras @ P20,000 P 160,000 Charges: Freight-in P 5,000 Deliveries and Installation expenses 8,000 Commissions 40.000 53,000 Total P 107,000 Remittance 25,000 Balance owed (collections from customers not yet made) 82,000 1. What is the inventory value of the units unsold in the hands of the consignee? A. 150,000 C. 154,500 B. 153,000 D. 157,500 2. What is the profit of the consignor for the units sold? A. 24,000 C. 27,000 B. 26,000 D. 70,000

On October 1, Claire Corp. shipped 25 cameras to Thor Inc. on consignment. The cameras are to be sold at list price of P20,000 each. The cost of each camera to the consignor is P10,000. The cost of shipment paid by the consignor was P7,500. The consignor agreed to absorb the consignee's expenditure for freight and also to allow the consignee P1,000 for delivery and installation for each set. Commission is to be 25% of the sales price. On October 31, Thor submitted the following summary of consignment sales: Sets received 25 Sets sold 8 Sets returned to consignor (defective) 2 10 Sets on hand 15 October 2-30 Sales, 8 cameras @ P20,000 P 160,000 Charges: Freight-in P 5,000 Deliveries and Installation expenses 8,000 Commissions 40.000 53,000 Total P 107,000 Remittance 25,000 Balance owed (collections from customers not yet made) 82,000 1. What is the inventory value of the units unsold in the hands of the consignee? A. 150,000 C. 154,500 B. 153,000 D. 157,500 2. What is the profit of the consignor for the units sold? A. 24,000 C. 27,000 B. 26,000 D. 70,000

FINANCIAL ACCOUNTING
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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On October 1, Claire Corp. shipped 25 cameras to Thor Inc. on consignment. The cameras are to be sold at list price of P20,000 each. The cost of each camera to the consignor is P10,000. The cost of shipment paid by the consignor was P7,500. The consignor agreed to absorb the consignee's expenditure for freight and also to allow the consignee P1,000 for delivery and installation for each set. Commission is to be 25% of the sales price. On October 31, Thor submitted the following summary of consignment sales: Sets received 25 Sets sold 8. Sets returned to consignor (defective) 10 Sets on hand 15 October 2-30 Sales, 8 cameras @ P20,000 P 160,000 Charges: Freight-in P 5,000 Deliveries and Installation expenses 8,000 Commissions 40,000 53,000 Total P 107,000 Remittance 25,000 Balance owed (collections from customers not yet made) 82,000 1. What is the inventory value of the units unsold in the hands of the consignee? A. 150,000 C. 154,500 B. 153,000 D. 157,500 2. What is the profit of the consignor for the units sold? A. 24,000 C. 27,000 B. 26,000 D. 70,000
Transcribed Image Text:On October 1, Claire Corp. shipped 25 cameras to Thor Inc. on consignment. The cameras are to be sold at list price of P20,000 each. The cost of each camera to the consignor is P10,000. The cost of shipment paid by the consignor was P7,500. The consignor agreed to absorb the consignee's expenditure for freight and also to allow the consignee P1,000 for delivery and installation for each set. Commission is to be 25% of the sales price. On October 31, Thor submitted the following summary of consignment sales: Sets received 25 Sets sold 8. Sets returned to consignor (defective) 10 Sets on hand 15 October 2-30 Sales, 8 cameras @ P20,000 P 160,000 Charges: Freight-in P 5,000 Deliveries and Installation expenses 8,000 Commissions 40,000 53,000 Total P 107,000 Remittance 25,000 Balance owed (collections from customers not yet made) 82,000 1. What is the inventory value of the units unsold in the hands of the consignee? A. 150,000 C. 154,500 B. 153,000 D. 157,500 2. What is the profit of the consignor for the units sold? A. 24,000 C. 27,000 B. 26,000 D. 70,000
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