X, Y and Z agree to sell yellow t-shirts and visors on February 24 and 25, X constructed a stand in front of Z's house at a cost of P200 chargeable to operations. Any profit from the joint operations will be distributed first by the payment of P50 to Z to cover the cost of cleaning his lot after the joint operations, then by allowing a 40% commission on individual sales and, finally, by dividing the remainder between X and Y in the ratio of 3:1. All purchases will be out-of-pocket and all sales activities will be the responsibility of each individual. On February 24, X purchased merchandise worth P5,000 using P1,000 handed to him by Y and P4,000 of his own money. Z paid P100 for a permit to operate the concession. X, Y and Z made sales at a mark-up of 100% on cost, as follows: X - P3,400; Y - P5,200; and, Z – P1,200, Z paid P180 for their personal meals, which is to be shared equally by all of them. On February 26, Z agreed to pay P100 for the stand. The balance of the inventory was taken by X at 50% of cost, as agreed to by Y and Z. The final cash settlement would be: Dayag 2013 | Y Y а. Р5,340 b. P2,560 (P4,260) (P1,080) (P2.010) (P 550) c. P1,870 (P2,250) d. P1,930 (P670) (P2,400) (P470)
X, Y and Z agree to sell yellow t-shirts and visors on February 24 and 25, X constructed a stand in front of Z's house at a cost of P200 chargeable to operations. Any profit from the joint operations will be distributed first by the payment of P50 to Z to cover the cost of cleaning his lot after the joint operations, then by allowing a 40% commission on individual sales and, finally, by dividing the remainder between X and Y in the ratio of 3:1. All purchases will be out-of-pocket and all sales activities will be the responsibility of each individual. On February 24, X purchased merchandise worth P5,000 using P1,000 handed to him by Y and P4,000 of his own money. Z paid P100 for a permit to operate the concession. X, Y and Z made sales at a mark-up of 100% on cost, as follows: X - P3,400; Y - P5,200; and, Z – P1,200, Z paid P180 for their personal meals, which is to be shared equally by all of them. On February 26, Z agreed to pay P100 for the stand. The balance of the inventory was taken by X at 50% of cost, as agreed to by Y and Z. The final cash settlement would be: Dayag 2013 | Y Y а. Р5,340 b. P2,560 (P4,260) (P1,080) (P2.010) (P 550) c. P1,870 (P2,250) d. P1,930 (P670) (P2,400) (P470)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The correct answer is B can you please provide solution how to get it? Thank you so much!
Transcribed Image Text:X, Y and Z agree to sell yellow t-shirts and visors on February 24 and 25, X constructed a
stand in front of Z's house at a cost of P200 chargeable to operations. Any profit from the joint
operations will be distributed first by the payment of P50 to Z to cover the cost of cleaning his
lot after the joint operations, then by allowing a 40% commission on individual sales and,
finally, by dividing the remainder between X and Y in the ratio of 3:1. All purchases will be
out-of-pocket and all sales activities will be the responsibility of each individual.
On February 24, X purchased merchandise worth P5,000 using P1,000 handed to him
by Y and P4,000 of his own money. Z paid P100 for a permit to operate the concession.
X, Y and Z made sales at a mark-up of 100% on cost, as follows: X - P3,400; Y
- P5,200; and, Z - P1,200, Z paid P180 for their personal meals, which is to be shared
equally by all of them.
On February 26, Z agreed to pay P100 for the stand. The balance of the inventory was
taken by X at 50% of cost, as agreed to by Y and Z.
The final cash settlement would be:
Dayag 2013
Y
Y
а. Р5,340
b. Р2,560
(P4,260) (P1,080)
(P2.010) (P 550)
c. P1,870 (P2,250)
d. P1,930 (P2,400)
(P670)
(P470)
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