On October 1, CLARK Co shipped 25 cameras to KENT 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
On October 1, CLARK Co shipped 25 cameras to KENT 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, KENT 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
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
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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