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    Enabling Assessment: 4200 Case 2: With Defective Units

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    Von Andrei Medina
    Case 1 summarizes the sale of 5 washing machines by a consignee without any defective units. The consignor's net profit was 4,200. Case 2 is similar but with 1 defective unit returned. The consignor's net profit was still 4,140 and the consignee's remittance for the 5 units sold was 34,500. The second document details two consignments of laser discs and TVs. It provides sales amounts and costs. The total inventoriable costs for goods still with the consignee was 56,700. The consignment of TVs resulted in a profit of 29,070 while the laser discs consignment had a loss of 3,600.

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    Enabling Assessment: 4200 Case 2: With Defective Units

    Uploaded by

    Von Andrei Medina
    261 views2 pages
    Case 1 summarizes the sale of 5 washing machines by a consignee without any defective units. The consignor's net profit was 4,200. Case 2 is similar but with 1 defective unit returned. The consignor's net profit was still 4,140 and the consignee's remittance for the 5 units sold was 34,500. The second document details two consignments of laser discs and TVs. It provides sales amounts and costs. The total inventoriable costs for goods still with the consignee was 56,700. The consignment of TVs resulted in a profit of 29,070 while the laser discs consignment had a loss of 3,600.

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    CSA 7

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    Case 1 summarizes the sale of 5 washing machines by a consignee without any defective units. The consignor's net profit was 4,200. Case 2 is similar but with 1 defective unit returned. The consignor's net profit was still 4,140 and the consignee's remittance for the 5 units sold was 34,500. The second document details two consignments of laser discs and TVs. It provides sales amounts and costs. The total inventoriable costs for goods still with the consignee was 56,700. The consignment of TVs resulted in a profit of 29,070 while the laser discs consignment had a loss of 3,600.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    261 views2 pages

    Enabling Assessment: 4200 Case 2: With Defective Units

    Uploaded by

    Von Andrei Medina
    Case 1 summarizes the sale of 5 washing machines by a consignee without any defective units. The consignor's net profit was 4,200. Case 2 is similar but with 1 defective unit returned. The consignor's net profit was still 4,140 and the consignee's remittance for the 5 units sold was 34,500. The second document details two consignments of laser discs and TVs. It provides sales amounts and costs. The total inventoriable costs for goods still with the consignee was 56,700. The consignment of TVs resulted in a profit of 29,070 while the laser discs consignment had a loss of 3,600.

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    ENABLING ASSESSMENT

    1. CASE 1: WITHOUT DEFECTIVE UNITS

    Cavite Town Center consigned 12 washing machines to Laguna Emporium. Each washing machine
    costs 6,000 and the consignor paid 720 for the freight. The consignee rendered an account sales for
    five units sold at 7,700 each and deducted the following items from the selling price.

    Commission based on sales net of commission 10%


    Marketing expense (based on commission) 10%
    Delivery and installation per unit sold P30

    ● The net profit of the consignor is (NOTE: TWO CASES)


    4200

    CASE 2: WITH DEFECTIVE UNITS

    Cavite Town Center consigned 12 washing machines to Laguna Emporium. Each washing machine
    costs P6,000 and the consignor paid P720 for the freight. Subsequently, the consignee returned
    one defective unit and rendered an account sales for five units sold at P7,700 each and deducted the
    following items from the selling price:

    Commission based on sales net of commission 10%


    Marketing expense (based on commission) 10%
    Delivery and installation per unit sold P30

    ● The net profit of the consignor is _______ (NOTE: TWO CASES)


    4140

    ● The remittance of the consignee on the five washing machines sold is ____
    34500

    2. The CCM Corporation ships out Laser Discs and television sets to consignees, who are allowed
    commission of 15% of the selling price on both types of merchandise. Consignees are also to be
    reimbursed for expenses incurred in connection with the consignment shipments. On December 31, the
    following information pertain to the consigned goods:

    Cost of goods shipped to consignees:


    Laser disc sets @ P12,000 180,000
    TV sets @P90,000 216,000

    Freight, handling and related expenses of shipment


    Laser disc sets 5,400
    TV sets 10,800

    Return freight on TV sets due to defects, “collect” 1,080

    Consignee’s remittances:
    On total laser disc sets sold (net of commission,
    P32,400 and cartage in, P1,800) 181,800
    On 15 TV sets sold (net of commissions and
    Installation costs of P2,700) 173,250

    Cost of TV sets returned by consignee:


    Because of defects 27,000
    The account sales rendered by the consignees were accompanied by checks for correct amounts.

    ● The total inventoriable costs related to the goods still in the possession of consignee is
    56700

    ● The profit or loss as of December 31, on the TV consignment is


    29070

    ● The profit of loss as of December 31, on the laser discs consignment is


    (3600)

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