07 - Revenue - Consignment Sales
Transcript of 07 - Revenue - Consignment Sales
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t.
-
Chopfbr 7
Revenue
-
Consrgnmenf
Soles
lntroduction
ln
some
onongernenfs
fhe
delivery
of
the goods
by the
monufoctarer
(wholesole
r)
to-the
deoler
(retailer)
is not
considered
t9
be
f u.ll
perfonnonce
ond
o
sole
becouse
the
manufocturer
refoins
title
to the
goods. Ihis
speciolized
mefhod
of
morketingl
certoin
ty
pes
of
producf
mokes
use
of
o
device
k'rown
os
o consignmenf.
IJnder
this
onongemenf,
the
consignor
(manvfocturer/
ships
merchondise
fo
fhe
consgnee
(deoler),
who
ts
fo
oct
os
on agent
f
or
the
consignor
in selling
fhe
meichondise.
Both
consignor
ond
consignee
ore
inlerested
in selling
-
the
former
to
moke
o
profit
or
develop
o
market,
the
lotter
fo
moke
o cornrnission
on
the soles.
Accounling
for
Consignmenl
Soles
A modified
version
of
the
soles
bosis
(regulorsoles) of
revenue
recognition
is
used
by
the consignor.
Thoi
is,
revenue
is
recognized
only
ofter
the
consignoi
receives
notificotion
of
sole ond
lhe cosh
remiltonce
from
the
consignee.
The
merchondise
is
conied
throughout
the consignment
os
the
inventory
of
the
consignor,
seporotely
clossified
os Merchondise
lnventory
on
Consignment.
lt
is
not
recorded
os
on
osset
on
the'consignee's
books-
Upon
iole
of
the merchondise, the consignee
hos
liobility
for
the
net
omount
due
the consignor.
The
consignor
periodicolly
receives
from
the
consignee
on occoUnlsoles
thot
shows
lhe merChondise
received,
merchondise
sold,
expenses
chorgeoble
to the consignment,
ond
the cosh
remiited'
Revenue
then is recognized
by
the
consignor'
il.
331
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The following
items
ore
procedures
in
consignmenl
soles
lronsoclion:
A.
Consignor
l. Consignment
tronsoctions
recorded
seporotely
-
this
method
determines
consignment
profit
seporote
from
regulor
soles.
An
inventory
occount
colled os
lnventory
on
Consignment
is
used
to record
lronsoctions
in
relotion
to
consigqment.
o lnventory
on
Consignment
occounf is
debffed
for:
Cost
of
goods
shipped
on consignment
.
Expe.nses
reloted
to consignment
incurred
by
the
consrgnor
Reimbursoble expenses
reloted
to consignment
poid
by the
consignee.
'"
="'?:ii*$ikit#',",
:*;H*ill.
. n n
g,.
consignment.
2.
Conslgnmenl
lronsoctions
not
recorded
seporolely
-
consignment
tronsoclions
ore treoted
like
o
regulor
type
of soles.
Delerminotion
of
consignment
profit
is
not
required
since it
is
olreody
port
of the
profit
of the entire enlity.
B.
Consignee
l.
consignment
tronsoctions
recorded
seporolely
-
under ihis
method,
two
occounts
ore
needed
to
be mointoined
in
relotion
to
consignment
tronsoctions:
o. Consignorreceivoble
occountis:
ff3ll'.iliJ
irfi:Tfi,[x*
ot the
consisnee
but
crediled
when
remittonce
is
mode
lo the
consignor
b'
consis
nor
5,ffi
?j?,i:',:Ht
l'r,n.
consignee
.
debifed
when
remittonce
is
mode
by
the
consignor
2.
Consignmenl
tronsoclions
nol
recorded
seporotety
-
consignment
lronsociions
ore
treoted
like
o
regulor
type
of soles.
Determinotion
of
consignment
profit
is
not
r6quired
since
it i:
olreody
port
of the
profit
of the
entire
entity.
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Revenue
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Cousignntent
Sales
l.
On
November
30,
Northup
Compony
consigned
90 freezers
to
Wotson
Compony
for sole
of
Pl,600
eoch
ond
poid
P1,200
in tronsportolion
co.sts.
A
report of
soles
wos
received
on
December30
from
Wolson
reporting
the
sole of
20freezers,
togetherwith
o
remittonce
of the
P27,2O0
bolonce
due.
The
remiitonce
wos net of
the
ogreed
l5%
commission.
How
much,
ohd
in
whot
monih,
should
Northup
recognize
os consignment
soles
revenue?
2. On
August
,1
2013,
JBD,
lnc. consigned
to Mogs
Store
l0
lodies
hondbogs
costing
P3,0oo
eoch.
poying
freight
chorge
of
P3,000.
At
the end of
the
month,
Mogs
store
reported
soles
of 6
hondbogs
of
P6,000
eoch
ond
expenses
incurred
of 2,500,
ond
remitted
the
net
proceeds
due
to JBD
ofier
deducting
o
2OYo
commission.
,
How
much
net
income
did
JBD
reolize
in August
on
the consignment?
November
December
o.
P 0
P32,000
b. P 0
P27,200
o.
F7,500
net
income
b.
P6,500
net
income
o.
P12,000
b.
P13,200
November
December
c.
P144,000
P
0
d.
P142,8@
P 0
3.
Using
lhe
some
informotion
in No.2,
whot
is
the iotol cost of
inventory
of
unsold
hondbogs:
c.
?5,7OO
net loss
d.
P6,500
netloss
c.
P14,200
d. Pr5,000
4.
On June
l, Bruce
Compony
shipped
25 television
sets
to Lee,
lnc. on
consignment.
The sets
ore
to
be
sold
ot on
odvertised
price
of
P20,000.
The
cost gf
eoch
set
to
lhe
consignor
wos
PI0,000.
The
cost
of
shipment
poid
by
the consignor
wos P7,500.
The consignor
ogreed
to obsorb
the
consignee's
expenditure
for freight ond
olso
to
ollow
the consignee
P1,000
for delivery
ond
instollotion
of
eoch
set.'Commission
is
to
be
257o of
the
soles
price.
On
June 30,
Lee
submitted
the following
summory
of
consignment
soles:
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Chapter
7
Sets
received
Sel
sold
consignor
(defective)
I
2
ets returned
to
Sels
on hond
..lune
3
-
30
Soles,
8 sets
ot P20.0OO
Chorges:
Freight-in
Deliveries
ond
instolloiion
expenses
Commissions,
25%
of
soles
25
t0
l5
P I
60,000
P
5,000
8,000
40,000
53,000
P
I
02,000
25,000
emiltonce
enclosed
Bolonce
owed
(colleclions
from
customers
noi
yel
mode)
Compute
the
inventory
volue
of
the
units
unsold
in
the
consignee:
r_
14999
honds
of the
5.
Compute
the
profit
for
the
consignor
for
the
units
sold:
o.
P150,000
b.
P153,000
o.
P24,000
b.
P26.000
o.
P 15,500
b.
Pr
6.500
c.
P154,500
d. P157.500
c."
P27,000
d.
P70,000
c.
P19,600
d.
P24.500
6.
on
November
1,2013,
lhe western
Applionce
center
ships.five
(5)
of
its
opplionces
to the
ABC
store
on
consignment.
Eochlunit
is
to
be
sold
ot
P25,000
poyoble
P5,000
in the
month
of
purchose
ond
pl,0o0
per
month
thereofter.
The
consignee
is
to
be entitled
to
2O%
of
oll
omounts
collected
on consignment
solei.
ABc
Store
sells
three
(3)
opplionces
in
November
ond one
(l
)
on December.
Regulor
monthly
collections
ore
mode by
the
consignee,
ond
oppropriote
cosh
remiltonces
qre
mode
to the
consignor
of
the
end
of eoch
month.
The
cost
of the
opplionces
shipped
oy tne
consignor
wos
P15,500
per
unit.
The
consignor
poid
shipping costs
to the
consignee
totoling
P5,OO0.
The
cost
of invenlory
on consignment
on December3l,20l3
is:
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Revenue
--
Co
trs
ign nen t
Sa
les
,335
7 .
Using
the
some
informotion
in No,
6,1he
profit
on consignmeni
for 201 3 ii':
'c.
P15,000
d.
Pr4000
B. Using
the
some
informotion
in No. 6, the totol omount
remitted to
consignor
for
the
yeor
2013 is:
i
o. P23,000
b.
Pr8,400
9. Abenson
Applionce
Center
merchondise:
Cosf
Freight'
Tbtol
P300,000
P10.000
P310,000
o. P29,4O0
b.
P
15,500
c. P12,000
d.
P
6.400
consigned
to
XYZ Morketing
the following
5,000
280,000
After one month, the consignee rendered on occount
soles os
follows:
Accounfs
Soles
SonyfVSet
DVD Plaver
Totol
l0
units of
Sony
LCD TV
Set
5
units
of Blu-roy DVD
floyer
No.
of
units
scrles
,dmount
of
soles
Less:
Chorges
-
.
Comrnission
(10%
of soles)
Cortoge-in
Net
omount
Remittonce
to consignor
P280,000
P210.000
P490.000
28,000 21,000
49,000
3,s00
r,5oo
5,000
P248,500
P187,500 P436,000
275,000
i
_____/_
,
l0
:
I13649q
The
net income
(loss)
on
consignmenl
of
Sony
TV
set
is:
o.
P
l9;500
nei
income c.
P5l
,O0O
net
income
b.
P32,550
nel income
d. Pl9,500loss
{PhitcPA)
I
O.
Using
the
some
informotion
in No.
9.
the cost of inventory on consignment
is:
d.
o.
b.
P112,000
P205,000
P206,650
P3r 7,000
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Chapter 7
I l:
Generol compony
consigned
five computer
equipmehts,
wiih
cosl
of
P8,000 eoch, to
the Xoviery
computers
which
wos to
sellthese
goods
for
lhe
occounl
ond risk
of the former
for
o commission
of l5%
of
selling
price.
The
Generol Compony
poid
trucking
costs
of
p2,000
on
the
shipment..
Correspondingly, Xoviery
Computers
poid
P3,200
on the
freight
of the
'
shipment.
on lhe lost doy
of
the
yeor,
Xoviery
computers
reporled
thot it
sold three
of the
computers: two
for
cosh
of P15,000
eoch ond
one
on
credit
ot
Pl8,000
of
which
25%wos
collected
os downpoyment.
Xoviery
Computers
remitied
ollthe
cosh due.
The
omount remitted
by Xoviery
Computers
is:
o.
P13,500
b. P24.IOO
o. P16,000
b. P17,2W
c. P34,500
d. P37,600
c.
Pl2/W
d. Pl3,680
c. Pl8,080
d.
P27,120
12.
Using
the
some
informotion
in No.
I
l. the
consignmenl
net
income
(loss)
is:
o.
P10,400
b. Pl r,600
13. Using
lhe
some informotion
in
No.
ll,
ihe
omount
of
inventory
on
consignment
of Generol
Compony
is:
14.
On July 15,2013,
Jomes
Lost
Soles
Compony
received
o shipment
of
merchondise wiih
o
selling
price
of
P150,000
from
Jomes
Bond
compony.
The
consigned
goods
cost
Jomes
Bond
compony
ploo,ooo
ond freight
chorges
of P1,200
hod
been
poid
to
ship the
goods
lo
Jomes
Lost
Compony.
The consignment
ogreement
provided
forq
sole of
merchondise
on
credit
wilh
lerms
ot 2llO, n/30.
The l5%
commission
is to
be
bosed
on
the
occounts
receivoble
collected
by
the
consignee.
Cosh
discounts
token
by
customen,
expenses
opplicoble
to
goods
on
consignment
ond
ony
cosh
odvonced
to
the
consignor
ore
deductible
from
the
remittonce
by
lhe
consignee.
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Revenue
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Consignnrent Sales
3i7
Jomes Losl Compony
ddvonced
P60,000 to
Jomes
Bond
Compony
upon
receipt of the shipment.
Expenses
of
P8,000
wos
poid
by
Jomes
Lost. By
August 20rc,7A% of the shipment
hod
been
sold. ond BO% of the
resulting
occounts
receivoble hod been collectbd, ollwithin
the discount period.
Remittonce
of lhe omount due
wos
mode
on
Augusl30,
2013.
The cosh remitted by Jomes
Losl
Compony
is:
15,
U5ing
the
some
informolion
in
No.
14, the
netincome
(loss)
on consignment
is:
o.
P I,72O
b. P22,3@
o. P14,280
b. PI3,560
o.
P.l5,000
b. P30,360
c.,
P23,4@
d.
P61,724
c. Pl1,880
d. P 8,730
I6. The
cost of
unsold
units
in the
honds
(merchondise
on
consignment)
of
Jomes
Losl is:
I
c.
P3O,B4O
d.
P31,860
17:
On
September
5, 2013,
the
Helh Computers consigned
30
opple
compuler
units,
costing P80,000
eoch,
to Abet, lnc.
The units
were
io be sold on
either cosh
or
credii
bosis
of o commission
of l5%
of
net soles. The
consignor
poid
freight
of
P18,000 on the shipment. On September I l, the consignee
received the
goods.
Soles
were mode
os
follows:
September I 5: l0 units for cosh of
P I
3O,OOO eoch.
September2T:12 units
on
occount of P140,000 eoch.
On September
30,
201
3,
o
soles ollowonce of
P20,000 wos
given
to o chorge
customerforo
defective
unit.
On October
10,2013,
o
receivoble
bolonce
of
P70,000
wos
determined to be uncollectible.
On
October
I
l,
2013,
the
consignee mode the
proper
remiitonce.
The
omount due
from
Abet,
lnc.
is:
c.
d.
o.
b.
P2,980.000
P2.890.000
P2,536,000
P2,446,OOO
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lB.
Using
the
some informotion
in No.
17,
the
consignment
profit (loss)
is:
19.
The cost df inveniory
on consignment
is:
o.
P640,000
b.
P644,8@r
o.
P464,000
b.
P484,@0
c.
P554,000
d.
P672,800
c.
P664,800
d.
P708,000
20. Mongol Pencil
Compony consigns
pencils
lo
reloilers,
debiting
Accounts
Receivoble for the retoil
soles
price
of
the
pencils
consigned
ond crediting
Soles.
Allcosts reloting
lo lhe
consigned
pencils
ore
debited
to
expenses
of the cunent
occounting
period.
Net
remittonces of the
consignees
ore
,
credited
to
Accounts
Receivoble.
On December.800
pencils
costing
P60 eoch
ond retoiling for Pl00
o unit
were
consigned
to
Mongolion
Store.
Freight
cost of PB00 wos
debiled
to
Freight Expense
by
the
consignor.
On December
31,
Mongolion
Store
remitled P35,505 to
Mongol
Compony
in full
settlement
of the bolonce
due.
Accounts
Receivoble wos
credited for
this omounl.
The
consignee
deductecl
o commission
of
Pl0
on
eoch
pencil
sold ond
P45 for delivery
expense.
The
number
of
pencils
sold
by
Mongolion
Store is:
o.
355
b. 39s
21.
Condoro Mfg.
Componyconsigned
twenty
(20)
oirconditioners
to Coolrite,
.
lnc.
The
cosi
of
eoch
oirconditioner
is
P10,000,
ond the
freighi
on
the
shipmbnt
wos
poid
by
Condoro
Mfg.
Compony
in
lhe
omount
of
p4,OO0.
Coolrite, lnc.
subsequently
submitted
on occount
soles
sloting thot
it
hod
sold twelve oircondilioners,
ond remilted
the
bolonce
of
p196,400
due
to
condoro Mfg.
"compony.
The
remittonce
wos
net
of
ihe
following
deductions from
lhe
selling
price
of
the
oirconditioners
sold;
commission,
15% of the
selling
price;
odvertising,
ls%
of
commission;
delivery ond
instollotion
of oirconditioners
sold,
P1,600;
ond
cortoge
cost incurred
upon
receipt
of
lhe
consignmenl
shipment,
P600.
c.
49O
d.
500
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Consignment
Sales
339
How
much
of
the
net
income/
loss of
Condoro
Mfg.
Compony
on
the
obove
consignment?
(PhilcPA
1990)
22.
ln September
20i3,
Cononon
Bookstore
consigned
3,200
books,
costing
p60
ond
retoiling
for P
I 00 eoch
lo
ReSA
Siore,
debiting
Accounts
Receivoble
ond
crdditing
5oles
for
the
retoil
soles
price.
Fr,eight
cost
of
P32O0
was
debited
lo
Freight
Expense
by
the consignor.
on
seplember
30,
2013,
Cononon
Bookitore
received
from
ReSA
Store
the
omount
of
P142,020
in
fullsetilement
of
the bolsnce
due,
ond
Accounts
Receivoble
wos credited
for
this
cmount.
The
consignee
deducted
o
P20
commission
for eoch
book
sold,
P1B0
for delivery,
qnd
P200
for
odvertising
expense'
How
mony
books
were octuolly
sold
by
ReSA Store?
o.
?
72,400
b.
P 74,000
o.
.|,780
b.
|,778
c.
P
74,240
d.
Pl
1 1,397
c.
1,776
d.
1,424
.
(PhilcPA
1990)
Rosoles
Corporolion
delivered
150 both
woier
heoters
on
consignment
bosis
to
Bouiislo
Compony.
These
woter
heoters
cost
P900 eoch,
ond
they
ore
odverlised
to
sell
of
P1,500
eoch'
The consignee
is
lo
be ollowed
o commission
of
15%
of
the selling
price.
The
consilnment
ogreemeni
olso
stoted
thot
the consignor
would
drow
o sight
droft
on
the
consignee
for 6O%
of
the cosi
of
lhe
woler
heoters.
The
odvonce
sholl
be
recovered
periodicolly
by
the consignee
through
monthly
deductions,
in
proportion
to
lhe
number
of units
sold,
from the
remittonces
which
occompony
the
monthly
occount
soles.
All
expenses
of
the
consignee
ore
to
be
deducted
monthly
os
incurred.
The
consignee rendered
on
occount
soles
of
the end of the
first
month
showing,
omong
other
ihings,
the
following
informotion:
Advertising
Delivery expense...........
1,125'
Commission
.................
3,375
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7/24/2019 07 - Revenue - Consignment Sales
10/17
f]oq.monV
units
of
wqter
heoters
were
sotd
by Boutisio
Compony
during
the
first
month?
o.
15
units
c.
25
units
24.
Using
the
:oT9
informotion
in
No.
23,
how
much
wos
remitted
to
the
consignor
by,Boutisto
compony
otlhe.end
of
lhe
first,month?
-,
,
"'-
b.
20
units
d.
30
units
c,
P7,6fi
.
d.
P6,7fi
c.
P5:625
d.
Fg,ooo
o.
P22,5W
b.
Pt5,750
4.
:ig
lhg
sglne
inf6rmofion
in
No.
23,
how
much
wos
the
consignment
net
(loss)
of Rosoles
Corporotion
during
the
first
month?
o.
P2,5ffi
b.
P3,375
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7/24/2019 07 - Revenue - Consignment Sales
11/17
Revenue
*
Consignment
Sales
34t
l.
2.
3.
4.
5.
I
l.
12.
13.
14.
15.
21.
22.
23.
24.
25.
c
o
o
c
o
(o)
A'sole
tokes
ploce
when
there
is
o
tronsfer
of
ownership
of
goods.
A
consignment
does
not
transfer ownership
of
lhe
goods
to onother
person
who is to sell
the
goods
but the owner
retoins
title lo such
goods
until
the
consignee
mokes o bono
fide
sole.
Since
the
soles of
twenty
(20)
freezers
were mqde
in December
by
the
consignee
(Wotson),
therefore,
the soles
revenue
equivolent
to the number
of freezers
sold
(i.e.,
20
freezers
x P1,600
=
P32,000)
by
the
consignee
should
be
recognized
by
the consignor.
(b)
Consignment
Soles:
P6,000
x 6..............
P36,000
Less:
Applicoble costs ond
expenses
rdloted
to
consignment
soles:
Consignor:
Cost of
goods
sold:
P3,000
x 6.............
Pl8,000
Freight:
P3,000
x
6/10
1,800
Consignee
Expenses
2,500
Commission:2}%
x P36,000
7,200
n,5@
L_6,sqq
b
d
c
o
d
o
b
b
d
c
6.b
7.
d
B.b
9.
b
10. c
16.
b
\7.
d
rB.
d
19. b
20. b
l.
2.
Net
income
3.
(b)
The
inventory on
consignment
omounted
to
P13,200 compuied os
follows:
Cost: 4
x
P3,000
Freightout: 4/10 x P3,000
Pr2,000
1.200
P13,200
:
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7/24/2019 07 - Revenue - Consignment Sales
12/17
4.
(d)
The
inventory
on consignment
omounted
to
p
152,500
computed
os follows:
Chorges
by
consignor:
Cosl
of consigned
goods
.
(@P10,000/set)
Freight-oul
(P300
per
set|
Chorges
by consignee:
Freighl-in
(P200 per
set)
Delivery
ond instollotion
Chorges
Anolysis
Soles
'
lnventory
Totol
(8
setsJ
{15
setsj
I25
sets/
Commissions
125%ol
soles
(8
set5
x
P20,000
per
sell
40,000
O
4O,OOO
Tolol
P
80;000
3,000*
Pr33,000
2,000*
,
3,000
5.000
8,000
0
8,000
t
Freight
on sels returned
is
chorged
ogoinsl
soles
of
the
period.
* *
Normolly,
lhe
lerm
"freight-oui"
is
synonymous
to
"delivery
expense': which
is
clossified
os
selling
expenses
if
we
ore deoling
wilh
o
lhhd
porty.
But,
for
consignmen?
occounling
where
lhe treonsfer
of
merchondise
if
from
consignor
lo
consignee,
the
usoge
of the term'Treight-out"
does not
construed
lo
be
o
selling
expens-e
but
still on
inventorioble
cost
(which
is
porl
of
freight-in).
5.
(c)
The
consignment
net income
omounted
top2l,oo0
computed
os
follows:
Consignment
Soles
(8
sets
x P20,OO0
per
set) ..
Less: Applicoble
cost
ond expenses
-
chorges
reloling
to
consignment
soles
(refer
lo No.
4)
...........
Net
income
6.
(b)
The
inventory
on
consignment
omourited
to
pl6,s00
computed
os
follows:
Chorges
Ano/ysis
P62,000
4,000
20,000
lnventory
fotol
ll
sef/
{5
unils/
Pl5,50o
P77,5oO
1,000
5,000
20,@0
Chorges
by
consignor:
Cost
of
consigned
goods
(@P
15,500/set)
Shipping
cost
Chorges
by
consignee:
Commissions
120%
ot soles
(25,000
x 4)l
Totol
P150,000
P230.000
4,500
7,500
P157,500
P290,500
Pr160,000
r
33,000
P
27,000
Pr6,500
P102,500
Soles
f4
sefs)
-rq4499
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7/24/2019 07 - Revenue - Consignment Sales
13/17
\
343
Revenue
-
Consignment
Sales
7.
(d)
ihe consignment
nel
income
omounied
to
P14,000
computed
os
follows:
Consignment
Soles
(4
units
x
P25,000
per
unit)
Pl00'000
Less:
Applicoble
cost
ond expenses:
chorges
reloied
lo
ionsignment
soles
(refer
lo No.
5) ..;.....'....'...;.:........"...'
86,000
Nel
income
T....................
....'.........:...
-14,09q
B.
(b)
in"
totot omount
remitted
omounted
to PI8,400
computed
os
follows:
Colleclion
in 2013:
Novembersoles-3unils
November
downpoyment
(3
units
x P5,O0O)
.......
December inslollment
(3 units
x
P1,000)
Decembersoles-l
unil
December
downpoyment
(l
unit
x
P5,000).........
Totol
collections
........,...
Less: Commission
12O7"
ot
soles
x
colleclions
of 'P23,000)
Totol
remiltonce
..............
P 15,000
3,000
5,000
P 23,000
4,600
P
18,400
9.
(b)
bonsignmenl
soles
(given
epr
problem)
.....'...........'..'
Less:
Applicoble
cosi
ond
expenses
-
chorges
reloted
to
consignmenl
soles:
,
Cost
of
goods
sold
(R300.000
x 7/10)
....'..
Freight
(P10,000
x 7
llOl
Commission
(10%
x
P280,000)
Cor.toge-in
{P3,500
x
7
/
10)
Net income
10.
{c}
P280,000
P210,000
7,000
28,000
2,450
245,450
P
32,550
SonyIVSef
DVD
PlaYer
Totol
Cosi
of
goods,sold:
TV:
3/10
x
P300,000
DVD
ployer:
2/
5
x
P27 5,OOO
Add:
Freighl:
TV:3/10
x P10.000
DVD
ployer:
2/5 x
P5,000
Cortoge-in:
TV:3/10
x
P3,500
DVD
ployer:
2/5
x Pl,500
Totol cost
of
inventory
Pl10,000
P200,000
2.000
5,000
600
1,550
Pl
r 2;600
P206,650
P90,000
3,000
1.050
re4.0a
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7/24/2019 07 - Revenue - Consignment Sales
14/17
1
t.
(b)
The
totol
omount
remitied
omounted
to
p24,iO0
computed
gs
follows:
Colleciions
mode
from:
Cqsh
solei
(P15,000
x2)
....,...........
P30.000
4,500
P34,500
10,400
P24,tOO
Credil
soles (P18,000
x2S%l
Freight
Toiol
collections
Less:
Chorges:
Comrnission
(P30,000 +
p18,000)
x
t5%....
Net income....-.,
P3,200
7,200
Totol
remittonce
12.
(d)
The
consignmeni
net
income
omounted
to
pl3,680
computed
os
follows:
Consignmeni
Soles
P48.000
34'320
P
13,680
Chorge
Anolysis
lnventory
Totot
'
(2)
(s)
Pl6,000
.P40,000
800
2,000
1,280
3,200
0
7,200
PI8,080
P52,4oO
Less:
Applicoble
cost
ond
expenses
-
chorges
reloting
to
consignment
soles
(refer
io
toble
bel6w
............:.....
Chorges
by
consignor:
Cost
Trucking
cosls
Chorges
by
consignee:
Freight
Commission
Totol
Soles
(3)
P24,OOA
|,200
1,920
7,200"
P34,320
r3.
14.
(c)
-
refer
to
No.
12tor
further
compulolion.
(o)
ih.
totot
omount
remitted
omounted
lo
pl,T2lcomputed
os
follows:
Gross
cottOction
(pl50,O0O
x70%
x8O%)
...........
Less:
Cosh
discounl
token
by
customeri
(pg
,OOO
x2%l
Nel
collection
...................--.--.
Les:
Chorges:"
-"""".'"""'
1xpenses...............:.:.........
p
g,OOO
ission
(p84,000
x 15%l
uue
to
consignor....
p6l
,72O
Less:
Advonces...............
io,OoO
Cosh
remiited
by
Jomes
Lost
Compo;
.......
;;r*
P84,000
I,680
P82,320
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7/24/2019 07 - Revenue - Consignment Sales
15/17
Revenuc
-
Consignntent
Sales
34s
r5.
(d)
The
consignment net
income omounied
to
Pl3,680
computed
os
follows:
Consignmerni
Soles
(PISO,OOO
x7O%l
PIOS,OOO
Less:
Applicoble
cost
ond
-expenses
-
chorges reloling 1o
consignmenl
soles
{refer
to tqblo below) .....................
96,270
Net income
P
8.730
Chorges by consiEnor:
Cosl
Freighl
Chorges
by consignee:
Expenses
Commission
{PI05.000
x
l5%)
15,750
Cosh discounls
(PI05,000
x80%x2%l 1,680
TotEl
zu49
16.
(b)
-
refer
to
No.
l5 for
further
computotion.
17.
(d)
Soles
on
credil
[(P140,000/unit
x
l2 units)
+
(P130,000/unii
x
l0
units)
...........
Less:
Soles
ollowonce
...........,.r....,..,.,.......
Doubiful
occounls
Commission
[(P2,980,000
-
P20,000)
x
15%]
.,....
Amount
due
from
Abel,
lnc.
r8.
(d)
Chorqe
Anolysis
Soles
tnventory
Totot
(70%)
.
(s0%) (100%t
P70,000 P30,000 P]00,000
840
360
1,200
8,000 8,000
15,750
1,680
P30,360 P129,630
P2,990,000
P20,000
70.000
44 ,AOO
s34,090
P2,446,000
0
0
0
.The
consignment
net
income omounted
toP672,8OO
computed os follows:
Consignmenl
Soles
(refer
lo No.
17)
P2,980,000
Less:
Applicoble
cosl
ond expenses.-
chorges
reloling
to
consignment soles
{refer
to
toble
bekrw)
-...................,
2,307,200
Net
incorne
r.i........r.........;
P,6?2,8A0
Chorges by consignor:
Cost
Freight
Chorges
by consignee:
Soles
ollowonce
Doublful
occounls
Commission
[(P2,980,000 -
P20,000) x
l5%l
Tolol
Chorge
Anolysr:s
lnventory
Totol
(s0)
P640,000
P2,400.000
4,800
r
8,000
0
20,000
0
70,000
0
44.OOO
1644,800
P2,9,2,OOO
Soles
(22)
P
I
,760,000
r
3,200
20,000
70,000
.444.OOO
P2,307,000
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7/24/2019 07 - Revenue - Consignment Sales
16/17
19.
20.
Remitlonce
Therefore:
x-.10x-P45=P35,505
.90
x
=
P35,500
x
=
P35,5fi/.9O
x
=
P39,500
Soles
=
P39,500
Units sold
=
P39,500
/
pl00
per
unit
=
P395
units
sold
21.
(c)
Consignment
Soles:
PI96,400+PI,600+P600
or
P198.6@/.825
lffi%-
157"-
{15%x
157"1
Less: Applicoble
cost ond
expenses
-
chorges
reloling
lo
consignment
soles:
Cost
of
goods
sold:
P10,000
x
l2
Freight-oul: P4,000
x, 12120
Cortoge: P600
x l2/2O.......
Delivery
ond inslollotion
Commissions:
l57o
x
P240,@0
Adverlising:
l57o
x P36,000
Commission
(unknown)
(P2O
x X)
.........:...............
Advertising
Delivery
expense
P l0%x
45
P35,505
P240,000
Pr
20,000
2,400
350
1,600
36,000
s,400
Nel income
22"
(o)
|
65,760
P 74,240
PIOO
X
P?
200
180
?
P _42pn
emiltonce
Therefore:
Pl0O
X
-
P2O X
-
P2O0'
Pl80
=
pt
42,040
P80
X.
=
PI42,O4O
+
p20O
+
pl80
P8O
X
=
P142,4OO
f,
=
p142A@/pAO
unirs
sorJ
=
l:133
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7/24/2019 07 - Revenue - Consignment Sales
17/17
Revenue
-
Consignment Sales
347
23.
(o)
Selling
price
per
unil ...............
24.
(c)
Soles: l5 unils x Pl"50O
Less: Chorges by consignee
-
Advertising
.......................
Commission
.................:.....................
Delivery
expense
Amounl
due
to
consignor
Less:
Advonces,ropplicoble to
units
sold:
Advonce
per
unil: P900
x 607o.....:........
Muliiplied
by:
Number
of unils
sold .................... iS
Amount remilled lo the
consignor by Boulislo Compony
2s.
(o)
.
Consignmenl
Sole:
l5
units
x P1.500 ............................
Less:
Applicoble
cost
ond
expenses
*
Chorges
reloting
to
consignment
soles:
Cosl
of
goods
sold:
l5
unils
x
PSOO ...........
Pl3,5OO
Advertising:
.:..................
Delivery......
................."............
|
,125
Commissions
3,375
Mulliplied
by:
7o
ot
commission
Commission
per
unil
Number
of units sold
by consignee:
Tolol
Commissions
reporled
................
Divided
by:
Commission
per
unit
........................
Number of units sold.
tncome
P3,375
P
225
l5
P2,250
3,375,
1,125
P1,500
I
57"
P
225
P22,500
6,750
P15,750
8,100
P7,650
P22,500
20,2sa
P 2,250