07 - revenue - consignment sales

7/24/2019 07 - Revenue - Consignment Sales

1/17

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


2/17

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.


3/17

Revenue

-

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:


4/17

334

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:


5/17

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


6/17

336

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.


7/17

Revenue

-

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


8/17

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


9/17

Revenue

-

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


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


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

:


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


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


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


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


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


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

07 - revenue - consignment sales

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