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    Consignment Sales Problems

    Uploaded by

    Akako Matsumoto
    The document contains details of multiple consignment arrangements including units consigned and sold, costs incurred, commissions, and pricing. It provides accounting questions related to calculating net income, ending inventory costs, expenses, units sold, amounts remitted, and profit or loss for the consignors and consignees.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Consignment Sales Problems

    Uploaded by

    Akako Matsumoto
    637 views1 page
    The document contains details of multiple consignment arrangements including units consigned and sold, costs incurred, commissions, and pricing. It provides accounting questions related to calculating net income, ending inventory costs, expenses, units sold, amounts remitted, and profit or loss for the consignors and consignees.

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    (2) Consignment Sales Problems.docx

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    The document contains details of multiple consignment arrangements including units consigned and sold, costs incurred, commissions, and pricing. It provides accounting questions related to calculating net income, ending inventory costs, expenses, units sold, amounts remitted, and profit or loss for the consignors and consignees.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    637 views1 page

    Consignment Sales Problems

    Uploaded by

    Akako Matsumoto
    The document contains details of multiple consignment arrangements including units consigned and sold, costs incurred, commissions, and pricing. It provides accounting questions related to calculating net income, ending inventory costs, expenses, units sold, amounts remitted, and profit or loss for the consignors and consignees.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    CONSIGNMENT SALES HAND-OUTS #2

    PROBLEM IV.

    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 December 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 December 17.

    PROBLEM V.

    IBM Makati consigned 1,000 units of printer costing P700 each, to SN Company to be sold at P1,200 per unit. The
    agreement calls for 20% commission on units sold and any expenses paid by SN Company like advertising cost is
    reimbursable by the consignor. The consignor paid P25,000 freight and insurance of P10,000 for the shipment. At the end
    of the month, SN Company reported that 190 units are still on hand. It remitted P743,000 after deducting commission of
    P192,000 and advertising cost of P25,000.

    1. Number of units sold

    2. Net income recognized by IBM Makati

    PROBLEM VI.

    Samsung Company shipped 400 electronic gadgets to Cherry Store at a suggested retail price of P650 each. Cherry paid
    for the shipping costs of P3,000 on the entire shipment. The two parties agreed that any sale in excess of the suggested
    retail price will accrue to the consignee. Cherry Company submitted an account sale of 300 gadgets, 55% of which was
    sold at P730 each and the rest at P800. Cherry Corporation has a mark-up on cost of 25%.

    1. Profit or loss on consignment

    2. Amount remitted by Cherry Store

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