Answer Key Chapter 9 Consignment

Download as pdf or txt
Download as pdf or txt
You are on page 1of 6

Answer Key Consignment

1. A
2. C
3. B
4. A
5. A
6. D
7. B
8. A
9. D
10. B
11. A
12. C
13. B (25,000 + 2,000)
14. B/B/A
Sales Inventory Total
(35 units) (15 units) (50 units)
Charges by Consignor:
Cost on Inventory P2,000/unit 70,000 30,000 100,000
Freight (1,000/50 = 20/unit) 700 300 1,000
Total 70,700 30,300 101,000
Charges by Consignee:
Commission (20% x P122,500) 24,500 24,500
Total 95,200 30,300 125,500
Less: Sales (P3,500 x 35) 122,500
Net Income 27,300

15. A/C
Req. 1
Answer
Gross Profit based on sale (15% x 120,000) 18,000
Less: Freight (5,000 x 12/20) 3,000
Selling expense 10,000
Commission 12,000
Installation and Delivery 5,000
Net Income (12,000)

Req. 2
COGS excluding freight (85% x 120,000) 102,000
Add: Freight cost (12/20 x 5,000) 3,000
Total COGS 105,000

16. A/B/C/A
Req. 1
Collections:
February Sales
Down payment (30 x P2,500) 75,000
Installment collection (30 x P500) 15,000
March Sales
Down payment (10 x P2,500) 25,000
Total 115,000
Less: Commission (20% x 115,000) (23,000)
Net Remittance 92,000

Answer 2 – 4
Sales Inventory Total
(40 units) (10 units) (50 units)
Charges by Consignor:
Cost on Inventory P7,750/unit 310,000 77,500 387,500
Freight (2,500/50 = 50/unit) 2,000 500 2,500
Total 312,000 78,000 390,000
Charges by Consignee:
Commission (20% x P115,000) 23,000 23,000
Total 335,000 78,000 413,000
Less: Sales (P12,500 x 40) 500,000
Net Income 165,000

17. A/A
Req. 1
Sales
(24 units)
Charges by Consignor:
Cost on Inventory P6,400/unit 153,600
Freight (1,600/40 = 40/unit) 960
Total 154,560
Charges by Consignee:
Delivery 1,360
Commission (15% x P307,200) 46,080
Total 202,000
Less: Sales (P12,000 x 16) + (P14,400 x 8) 307,200
Net Income 105,200

Req. 2
Collection
Cash Sales (12,000 x P16) 192,000
On Credit (P14,400 x 8 x 25%) 28,800
Total 220,800
Less: Delivery 1,360
Commission 46,080
Remittance 173,360

18. B/D
Req. 1
Answer
Net Income 10,650
Add: Expenses
Commission 12,000
Advertising 3,750
Total Gross Profit 26,400
Less: Sales 60,000
COGS 33,600
Less: Freight (6,000/50 x 30) 3,600
Cost of Goods Sold excluding Freight 30,000
Divide by Units Sold 30
Cost per unit 1,000

Cost (1,000 x 20) 20,000


Freight (6,000/50 x 20) 2,400
Inventory Cost 22,400

Req. 2
Commission 12,000
Advertising 3,750
COGS including freight 33,600
Total Expenses 49,350

19. D/B
Req. 1
Answer
Sales – Commission – Delivery cost – Advertising = Remittance
Lex x = Sales
X – 20% X – 3,000 – 1,875 = 79,125
80% x = 84,000
X = 105,000
105,000 x 20% = 21,000

Req. 2
Cost per pair (300 x 75) 22,500
Freight (3,750 x 75/250) 1,125
23,625

20. C/B/A
REq. 1
Sales (16,875/15%) 112,500
Less: Commission 16,875
Delivery 2,812.50
Advertising 5,625.00
Advances (60% x 2,250 x 30) 40,500.00
Remittance 46,687.50

Req. 2

Sales 112,500.00
Less: Cost (2,250 x 30) 67,500.00
Delivery 2,812.50
Commission 16,875.00
Advertising 5,625.00
Net Income 19,687.50

Req. 3
16,875/15% = 112,500 / Selling price 3,750 = 30

21. A/B
Sales Inventory
Unit sold P3,200 / 400 = 8 (8 units) (38 units)
Charges by Consignor:
Cost on Inventory P200/unit 1,600 7,600
Freight (150/50 = 3/unit)* 36 114
Total 1,636 7,714
Charges by Consignee:
Delivery
Commission ( 800
Total 2,436 7,714
Less: Sales (800 / 25%) 3,200
Net Income 764

22. A/A
Req. 1
Cost (3 x 2,000) 6,000
Freight (600 x 3/10) 180
Total 6,180

Req. 2
Sales 21,000
Less: Advertising 1,000
Commission 4,200
Cost (7 x 2,000) 14,000
Freight (600 x 7/10) 420 19,620
1,380

STRAIGHT PROBLEMS
Problem 1
Req. 1
C = 10% (S - C)
C = 10% ([P30,800 x 10] - C)
C =10% (308,000 - C )
C = 30,800 - 10%C
110% C = 30,800
C = 28,000

Req. 2
Sales (10 units x 30,800) 308,000
Less: COGS
Freight (3,000 x 10/30) 1,000
Unit sold (24,000 x 10) 240,000
Gross Profit 67,000
Less: Commission 28,000
Marketing (28,000 x 5%) 1,400
Delivery and Installation (1000 x 10) 10,000
Net Income 27,600

Req. 3
Sales 308,000
Less: Commission 28,000
Marketing 1,400
Delivery and Installation 10,000
Net Remittance 268,600

Req. 4
Freight (3,000 x 20/30) 2,000
Units unsold (24,000 x 20) 480,000
Total Ending inventory 482,000
Req. 5
Consignor - Whirlpool Consignee - Abenson
1 Inventory on Consignment 720,000 Memo Entry
Inventory 720,000

2 Inventory on Consignment 3,000 No Entry


Cash 3,000

3 Advertising expense 11,400 Consignor Receivable 11,400


Consignee Payable 11,400 Cash 11,400

4 No Entry Cash 308,000


Consignor Payable 308,000

Commission Expense 28,000 Consignor Payable 308,000


5 Cash (remittance) 268,600 Consignor Receivable 11,400
Consignee Payable 11,400 Commission Revenue 28,000
Sales 308,000 Cash (remittance) 268,600

Cost of Goods Sold 241,000


Inventory on Consignment 241,000

Problem 2
Req. 1
Collections:
January - month of sale (20,000 x 6) 120,000
Following month February (4,000 x 6) 24,000

February - month of sales (20,000 x 2) 40,000


Total collections 184,000

Req. 2
Collections:
January - month of sale (20,000 x 6) 120,000
Following month February (4,000 x 6) 24,000

February - month of sales (20,000 x 2) 40,000


Total collections 184,000
Less: Commission (20% x 184,000) 36,800
Remittance 147,200

Problem 3

Req. 1
Units consigned (10 - 7 sold -1 returned = 2 x 20,000) 40,000
Freight (2/10 x 10,000) 2,000
Cartage cost (2/10 x 3,000) 600
Total 42,600

Req. 2
Sales (7 x [20,000 x 210%]) 294,000
Less: Advertising 1,000
Commission (15% x 294,000) 44,100
Delivery and Installation 8,000
Freight on returned unit 500
Net Remittance 240,400
Req. 3
Sales (7 x [20,000 x 210%]) 294,000
Less: COGS
Units sold (7 x 20,000) 140,000
Freight (7 + 1 = 8/10 x 10,000) 8,000
Cartage (7 + 1 = 8/10 x 3K) 2,400
Gross Profit 143,600
Less: Advertising 2,000
Commission (15% x 294,000) 44,100
Delivery and Installation 12,000
Freight on returned unit 500
Net Income 90,000

Req. 4
Consignor - Samsung Consignee – All Home
1 Inventory on Consignment 200,000 Memo Entry
Inventory 200,000

2 Inventory on Consignment 13,000 No Entry


Cash 13,000

3 Advertising expense 9,500 Consignor Receivable 9,500


Consignee Payable 9,500 Cash 9,500

4 No Entry Cash 294,000


Consignor Payable 294,000

Commission Expense 44,100 Consignor Payable 294,000


5 Cash (remittance) 240,400 Consignor Receivable 9,500
Consignee Payable 9,500 Commission Revenue 44,100
Sales 294,000 Cash (remittance) 240,400

Inventory on consignment 42,600 No entry


Cost of Goods Sold 42,600

Cost of Goods Sold 150,400


Inventory on Consignment 150,400

You might also like