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    Quiz 7 Solutions

    Uploaded by

    Joyce Anne Garduque
    The document contains 10 sections that provide accounting information for various consignment arrangements, including sales amounts, costs, expenses, profits and losses. Section 4 specifies a remittance amount of P2,560,000 based on sales and expenses. Section 5 calculates a consignment profit of P1,390,000 by subtracting costs and expenses from total sales. Section 6 computes a consignment profit of P290,000 using a similar sales-less-costs approach.

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    Quiz 7 Solutions

    Uploaded by

    Joyce Anne Garduque
    70 views2 pages
    The document contains 10 sections that provide accounting information for various consignment arrangements, including sales amounts, costs, expenses, profits and losses. Section 4 specifies a remittance amount of P2,560,000 based on sales and expenses. Section 5 calculates a consignment profit of P1,390,000 by subtracting costs and expenses from total sales. Section 6 computes a consignment profit of P290,000 using a similar sales-less-costs approach.

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    QUIZ 7 SOLUTIONS

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    The document contains 10 sections that provide accounting information for various consignment arrangements, including sales amounts, costs, expenses, profits and losses. Section 4 specifies a remittance amount of P2,560,000 based on sales and expenses. Section 5 calculates a consignment profit of P1,390,000 by subtracting costs and expenses from total sales. Section 6 computes a consignment profit of P290,000 using a similar sales-less-costs approach.

    Copyright:

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

    Quiz 7 Solutions

    Uploaded by

    Joyce Anne Garduque
    The document contains 10 sections that provide accounting information for various consignment arrangements, including sales amounts, costs, expenses, profits and losses. Section 4 specifies a remittance amount of P2,560,000 based on sales and expenses. Section 5 calculates a consignment profit of P1,390,000 by subtracting costs and expenses from total sales. Section 6 computes a consignment profit of P290,000 using a similar sales-less-costs approach.

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    © All Rights Reserved
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    Download as pdf or txt
    of 2

    1.

    Zero
    2. . P25,000
    3 . P500

    4. . P2,560,000 is the amount to be remitted as determined from the following Account Sales:
    Sales:
    Cash (2 x P1,500,000) P3,000,000
    Credit Sales (1,800,000 x 25%) __450,000 P3,450,000
    Less: Consignee’s charges
    Commission (15% x P4,800,000) P 720,000
    Delivery expense __170,000 __890,000
    Remittance P2,560,000

    5. The consignment profit is P1,390,0000 determined as follows:


    Sales:
    Cash (2 x P1,500,000) P3,000,000
    Credit Sales (1 x 1,800,000) _1,800,000 P4,800,000
    Cost and expenses:
    Cost of goods (3 x P800,000) P2,400,000
    Trucking cost (3/5 x P200,000) 120,000
    Commission (15% x P4,800,000) 720,000
    Delivery expenses ___170,000 _3,410,000
    Consignment profit P1,390,000

    6. The consignment profit is P290,000 computed as follows:


    Sales (8x P200,000) P1,600,000
    Less: Cost and expenses:
    Cost (8 x P100,000) P 800,000
    Shipment cost (10/25 x P75,000) 30,000
    Commission (25% x P1,600,000) 400,000
    Expenses _ _80,000 _1,310,000
    Consignment Profit P 290,000

    7. Cost of inventory is P1,545,000 determined as follows:


    Cost (15 x P100,000) P1,500,000
    Add: Shipment cost (15/25 x P75,000) ___45,000
    Total _P1,545,000

    8. Dorothy- 1,500
    Units on consignment, December 31, 20x5 1,200
    Units sold by consignee in 20x5: P58,590/P9 _6,510
    Total 7,710
    Less: Units shipped on consignment in 20x5 _6,210
    Units on consignment, December 31, 20x4 _1,500
    9. P780
    Sales (60 x P99) P5,940
    Less applicable cost and expenses:
    Cost of sales: (50 x 60) P3,000
    Packing: (170 x 60/100) 102
    Shipping: (400 x 60/100) 240
    Freight: (60 x 60/100) 36
    Commission: (5,940 x 30%) _1,782 _5,160
    Consignment profit P 780

    10. Net loss, P1,400


    Sales P72,000
    Less: Cost and expenses:
    Cost (72,000 x 87.5%) P63,000
    Freight-out (2,000 x 6/10) 1,200
    Commission 7,200
    Selling expenses 800
    Installation and delivery __1,200 __73,400
    Net Loss ___(P1,400)

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