Rizal Co. consigns 30 hardware products to Bonifacio Co. on January 1, 20x1. The unit cost per hardware product is P8,000. Rizal pays P3,000 in transporting the hardware product to Bonifacio Co. At month-end, Bonifacio remits P230,000 for the sale of 14 hardware products, after deducting the following: 15% commission based on selling price Freight out P20,000 Installation costs 6,000 REQUIRED: Net income recognized by Rizal Co. on the consignment Carrying amount of inventory to be reported in Rizal’s balance sheet
Rizal Co. consigns 30 hardware products to Bonifacio Co. on January 1, 20x1. The unit cost per hardware product is P8,000. Rizal pays P3,000 in transporting the hardware product to Bonifacio Co. At month-end, Bonifacio remits P230,000 for the sale of 14 hardware products, after deducting the following: 15% commission based on selling price Freight out P20,000 Installation costs 6,000 REQUIRED: Net income recognized by Rizal Co. on the consignment Carrying amount of inventory to be reported in Rizal’s balance sheet
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Rizal Co. consigns 30 hardware products to Bonifacio Co. on January 1, 20x1. The unit cost per hardware product is P8,000. Rizal pays P3,000 in transporting the hardware product to Bonifacio Co. At month-end, Bonifacio remits P230,000 for the sale of 14 hardware products, after deducting the following:
|
15% commission based on selling price |
|
|
Freight out |
P20,000 |
|
Installation costs |
6,000 |
REQUIRED:
- Net income recognized by Rizal Co. on the consignment
- Carrying amount of inventory to be reported in Rizal’s
balance sheet
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