-

Chopfbr 7

Revenue Consrgnmenf Soles

t.

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.
il.

Accounling for Consignmenl Soles

A modified version of the soles bosis (regulorsoles) of revenue recognition

by the consignor. Thoi is, revenue is recognized only ofter the

consignoi receives notificotion of sole ond lhe cosh remiltonce from the

is used

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 booksUpon 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'

331

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.

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#',",
consignment.

2.

:*;H*ill.

nn

g,.

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:
ot the consisnee but

ff3ll'.iliJ irfi:Tfi,[x*

crediled when remittonce

b' consis nor

.
2.

is

5,ffi ?j?,i:',:Ht l'r,n.

debifed when remittonce

Consignmenl tronsoclions

is

mode lo the consignor

consignee
mode by the consignor

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.

Revenue

l.

- Cousignntent

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?

o.
b.
2.

Sales

November

P 0
P 0

November

December

December

c. P144,000 P
d. P142,8@ P

P32,000

P27,200

0
0

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?

o.
b.

F7,500 net income

P6,500 net income

c.
d.

?5,7OO

net

loss

P6,500 netloss

3. Using lhe some informotion in No.2, whot is the iotol cost of inventory of
unsold hondbogs:

o.
b.
4.

P12,000
P13,200

c.
d.

P14,200
Pr5,000

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:

On June

l,

334

Chapter 7

Sets received

25

Sel sold
Sets returned to consignor (defective)
Sels on hond

t0

l5

- 30 Soles, 8 sets ot P20.0OO

Chorges:
Freight-in
Deliveries ond instolloiion expenses
Commissions, 25% of soles

..lune 3

PI

P 5,000
8,000
40,000
PI

Remiltonce enclosed
Bolonce owed (colleclions from
customers noi yel mode)

60,000

53,000
02,000
25,000

r_ 14999

Compute the inventory volue of the units unsold in the honds of the

consignee:

o.
b.
5. Compute

o.
b.

P150,000
P153,000

c.
d.

P154,500
P157.500

the profit for the consignor for the units sold:

P24,000
P26.000

c."
d.

P27,000
P70,000

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

o.
b.

15,500

Pr 6.500

c.
d.

December3l,20l3

P19,600

P24.500

is:

Revenue -- Co

trs ign

Sa

,335

les

Using the some informotion in No, 6,1he profit on consignmeni for 201 3 ii':

o.
b.
B.

nen t

'c.
d.

P29,4O0
P 15,500

P15,000

Pr4000

Using the some informotion in No. 6, the totol omount remitted to consignor
for the yeor 2013 is:
i

o.
b.

c.
d.

P23,000

Pr8,400

9. Abenson Applionce Center

P12,000

P 6.400

consigned to XYZ Morketing the following

merchondise:

Cosf
l0 units of Sony LCD TV Set
5 units of Blu-roy DVD floyer

Freight'

P300,000 P10.000

5,000

275,000
i

Tbtol
P310,000
280,000

After one month, the consignee rendered on occount soles os follows:

Accounfs Soles

SonyfVSet
No. of units

scrles

DVD

Plaver

_____/_

,dmount of soles
Less: Chorges . Comrnission (10% of soles)

P280,000 P210.000

28,000 21,000
r,5oo
3,s00

Cortoge-in

P248,500

Net omount

P187,500

Remittonce to consignor

o.
b.

l9;500 nei

P32,550 nel

: ,

l0

P490.000
49,000
5,000
P436,000

I13649q

The net income (loss) on consignmenl of Sony TV set

Totol

income c.
income d.

is:

P5l ,O0O net income

Pl9,500loss
{PhitcPA)

I
i,

t
ir

O.

Using the some informotion in No. 9. the cost of inventory on consignment

is:

i;
!i

i
!:
c
!:
:r

t
$l

o.
b.

P112,000
P205,000

P206,650

d.

P3r 7,000

336

l:

'

Chapter

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.
b.
12.

Using

P13,500
P24.IOO

c.
d.

P34,500
P37,600

the some informotion in No. I l. the consignmenl net income

(loss)

is:

o.
b.

P10,400

Pl r,600

c.
d.

13. Using lhe some informotion in No.

consignment of Generol Compony

o.
b.

P16,000

P17,2W

Pl2/W
Pl3,680

ll, ihe omount of inventory on

is:

c.
d.

Pl8,080
P27,120

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.

Revenue

- Consignnrent

3i7

Sales

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

o.
b.
15,

P I,72O
P22,3@

U5ing the some

informolion in No.

c.,
d.
14,

is:

P23,4@

P61,724

the netincome (loss) on consignment

is:

o.
b.
I6.

P14,280

PI3,560

c.
d.

Pl1,880

P 8,730

The cost of unsold units in the honds (merchondise on consignment) of

Jomes Losl is:
I

o.
b.

c.
d.

P.l5,000
P30,360

P3O,B4O

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.

o.
b.

P2,980.000
P2.890.000

is:

c.
d.

P2,536,000
P2,446,OOO

lB.

Using the some informotion in No. 17,

o.
b.
19.

P464,000

P484,@0

c.
d.

the consignment profit

(loss) is:

P554,000

P672,800

The cost df inveniory on consignment is:

o.
b.

P640,000
P644,8@r

c.
d.

P664,800
P708,000

20. Mongol Pencil Compony consigns pencils lo reloilers, debiting Accounts

Receivoble for the retoil soles price of the pencils consigned ond crediting
lo lhe consigned pencils ore debited to expenses
of the cunent occounting period. Net remittonces of the consignees ore
credited to Accounts Receivoble.

Soles. Allcosts reloting

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.
b.

355

39s

c.
d.

49O

500

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.

Revenue

- Consignment

339

Sales

How much of the net income/ loss of Condoro Mfg. Compony on the
obove consignment?

o.
b.

c.
d.

? 72,400
P 74,000

P 74,240
Pl 1 1,397

(PhilcPA 1990)

22. ln September 20i3, Cononon Bookstore consigned 3,200 books, costing

00 eoch lo ReSA Siore, debiting Accounts Receivoble

the retoil soles price. Fr,eight cost of P32O0 was
for
ond crdditing 5oles
Expense
by the consignor. on seplember 30, 2013,
debited lo Freight
from ReSA Store the omount of P142,020 in
received
Cononon Bookitore
ond Accounts Receivoble wos credited
due,
the
bolsnce
fullsetilement of
o P20 commission for eoch book
deducted
The
consignee
for this cmount.
qnd
expense'
odvertising
for
P200
sold, P1B0 for delivery,
p60 ond retoiling for

PI

How mony books were octuolly sold by ReSA Store?

o.
b.

.|,780

|,778

c.
d.

1,776
1,424

(PhilcPA 1990)

woier heoters on consignment

cost P900 eoch, ond they
heoters
woter
These
Compony.
bosis to Bouiislo
eoch'
P1,500
sell
of
to
ore odverlised
Rosoles Corporolion delivered 150 both

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.

on occount soles of the end of the first month

showing, omong other ihings, the following informotion:

The consignee rendered

Advertising
Delivery expense...........
Commission .................

1,125'

3,375

f]oq.monV units of wqter heoters were sotd by Boutisio Compony during

the first month?

o.
b.
24.

15

units

c.
d.

20 units

25 units
30 units

Using the
:oT9 informotion in No. 23, how much wos remitted to the
consignor by,Boutisto compony otlhe.end of lhe first,month? -, , "'-

o.
b.

P22,5W

Pt5,750

c,
d.

P7,6fi
P6,7fi

lhg sglne inf6rmofion in No. 23, how much wos the consignment
4. !:ig(loss)
net
of Rosoles Corporotion during the first
month?

o.
b.

P2,5ffi
P3,375

c.

d.

P5:625
Fg,ooo

Revenue

l.

o
b
b
d

2.
3.
4.
5.

l.

34t

Consignment Sales

6.b
7. d
B.b
9. b
10. c

I l.
12.
13.

14.
15.

b
d
c
o
d

16.
\7.

rB.

19.
20.

b
d
d
b
b

22.

c
o

21.
23.

24.

25.

(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.

2.

(b)

Consignment Soles: P6,000 x 6..............

Less: Applicoble costs ond expenses rdloted to
consignment soles:
Consignor:
Cost of goods sold: P3,000 x 6............. Pl8,000
1,800
Freight: P3,000 x 6/10
Consignee

Expenses

Commission:2}% x

P36,000

Net income

3.

(b)
The inventory on consignment omounted to P13,200

Cost: 4 x P3,000
Freightout: 4/10 x P3,000

P36,000

2,500

n,5@

7,200

L_6,sqq

compuied

os follows:

Pr2,000
1.200
P13,200

4.

(d)
The inventory on consignment

omounted to p 152,500 computed os follows:

Chorges Anolysis

'
setsJ

Soles
(8
Chorges by consignor:
Cosl of consigned goods

(@P10,000/set)

P 80;000

Freight-oul (P300 per set|

Chorges by consignee:
Freighl-in (P200 per set)
Delivery ond instollotion

sell

Tolol

P150,000

4,500

2,000*

3,000
0

40,000

Pr33,000

Totol
I25 sets/
P230.000
7,500

3,000*

8,000,

Commissions 125%ol soles (8 set5 x

P20,000 per

lnventory
{15 setsj

5.000
8,000

4O,OOO

P157,500

P290,500

t
*

5.

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).

(c)

The consignment net income

6.

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) ...........

Pr160,000

Net income

P 27,000

(b)
The inventory on

33,000

consignment omourited to pl6,s00 computed os follows:

Chorges Ano/ysis
Soles

f4 sefs)
Chorges by consignor:
Cost of consigned goods
(@P

15,500/set)

Shipping cost
Chorges by consignee:

P62,000

4,000

lnventory fotol
ll sef/
{5 unils/
Pl5,50o
1,000

P77,5oO
5,000

Pr6,500

P102,500

Commissions
120%

Totol

ot soles (25,000 x 4)l

20,000

-rq4499

20,@0

Revenue

- Consignment

343

Sales

7. (d)

ihe consignment nel income omounied to

P14,000

computed os follows:

unit)

Pl00'000
Consignment Soles (4 units x P25,000 per
Less: Applicoble cost ond expenses: chorges reloied lo
ionsignment soles (refer lo No. 5) ..;.....'....'...;.:........"...' 86,000

Nel income

B.

....'.........:... !-14,09q

T....................

(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 ........,...

3,000
5,000

P 23,000

Less: Commission

4,600

ot soles x colleclions of 'P23,000)

Totol remiltonce ..............
12O7"

9.

P 18,400

(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)

15,000

P280,000

P210,000
7,000
28,000

2,450

245,450

P 32,550

Net income

t
l
I

10.

{c}

SonyIVSef

DVD PlaYer

Totol

Cosi of goods,sold:
TV: 3/10 x P300,000

DVD ployer: 2/ 5 x

P90,000

P27 5,OOO

Pl10,000

P200,000

Add:
Freighl:
TV:3/10 x P10.000
DVD ployer: 2/5 x P5,000

3,000

2.000

5,000

Cortoge-in:
TV:3/10 x P3,500
DVD ployer: 2/5 x Pl,500
inventory
of
Totol cost

1.050

re4.0a

600

Pl

2;600

1,550

P206,650

t.

(b)

The totol omount remitied omounted to p24,iO0 computed gs follows:

Colleciions mode from:
Cqsh solei (P15,000 x2) ....,...........
Credil soles (P18,000 x2S%l
Toiol collections

P30.000

4,500
P34,500

Less: Chorges:

Freight
Comrnission (P30,000 + p18,000) x t5%....

P3,200

7,200

10,400

Totol remittonce

12.

P24,tOO

(d)
The consignmeni net income omounted

to pl3,680 computed os follows:

Consignmeni Soles
Less: Applicoble cost ond expenses
- chorges reloting to
consignment soles (refer io toble bel6w ............:.....
Net income....-.,

P48.000

34'320
P

13,680

Chorge Anolysis

' lnventory
(2)

Soles

Chorges by consignor:
Cost
Trucking cosls
Chorges by consignee:
Freight
Commission
Totol

(3)

Pl6,000

P24,OOA

800
1,280
0

|,200
1,920
7,200"

PI8,080

P34,320

Totot
(s)

.P40,000

2,000

3,200
7,200
P52,4oO

I
i

i
1

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

Nel collection ...................--.--.

-"""".'"""'
Les: Chorges:"

,OOO

1xpenses...............:.:.........
ission (p84,000 x 15%l
uue to consignor....
Less: Advonces...............
Cosh remiited by Jomes Lost Compo; .......

P84,000

x2%l

I,680
P82,320

i
g,OOO

p6l ,72O
io,OoO

;;r*

Revenuc

r5.

- Consignntent Sales

34s

(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

8.730

Chorqe Anolysis

tnventory Totot
(70%) . (s0%) (100%t
Soles

Chorges by consiEnor:
Cosl
Freighl
Chorges by consignee:

P70,000

840

P30,000 P]00,000

360

8,000

Expenses

0
0
0

15,750
Commission {PI05.000 x l5%)
Cosh discounls (PI05,000 x80%x2%l 1,680

TotEl
16.

17.

(b)

zu49

1,200

8,000
15,750
1,680

P30,360 P129,630

refer to No. l5 for further computotion.

(d)

on credil [(P140,000/unit x l2 units) +

(P130,000/unii x l0 units) ...........
Less: Soles
...........,.r....,..,.,.......

Soles

ollowonce

Doubiful occounls

Commission [(P2,980,000
Amount due from Abel, lnc.

r8.

P20,000)

P2,990,000
P20,000

70.000

15%] .,....

44!,AOO

s34,090
P2,446,000

(d)
.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
Chorge Anolysr:s
Soles
(22)

Chorges by consignor:
Cost
Freight
Chorges by consignee:

PI

Soles ollowonce

Doublful occounls

Commission [(P2,980,000
P20,000) x l5%l
Tolol

lnventory

Totol
(s0)

,760,000
r 3,200

P640,000 P2,400.000

20,000
70,000

20,000
70,000

.444.OOO

P2,307,000

4,800
0
0
0

1644,800

8,000

!44.OOO
P2,9,2,OOO

19.

20.

l0%x
45

Remitlonce

P35,505

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

P240,000

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

Nel income

22"

Pr

20,000

2,400
350
1,600

36,000

s,400

| 65,760
P 74,240

(o)
PIOO X

Commission (unknown)

Advertising

(P2O x X) .........:...............

P?
200

180

Delivery expense

Remiltonce

P!_42pn

Therefore:
Pl0O X - P2O X

P2O0' Pl80 = pt 42,040

P80 X. = PI42,O4O + p20O + pl80

=
f, = p142A@/pAO
unirs sorJ = l:133
P8O

P142,4OO

i
I
I

Revenue

23.

347

Consignment Sales

(o)
Selling price per unil ...............
Mulliplied by: 7o ot commission

P1,500

Commission per unil

I 57"

Number of units sold by consignee:

Tolol Commissions reporled ................
Divided by: Commission per unit ........................
Number of units sold.

24.

(c)
Soles:
Less:

l5 unils x Pl"50O

Chorges by consignee

Advertising
Commission

P3,375

P22,500

.......................

.................:.....................

Delivery expense

225

l5

P2,250
3,375,
1,125

Amounl due to consignor

Less: Advonces,ropplicoble to units sold:
Advonce per unil: P900 x 607o.....:........
Muliiplied by: Number of unils sold ....................
Amount remilled lo the consignor by Boulislo Compony

2s.

reloting to consignment soles:

Cosl of goods sold: l5 unils x
Advertising: .:..................

Delivery......
Commissions

PSOO

...........

6,750
P15,750

iS

8,100
P7,650

(o)
Consignmenl Sole: l5 units x P1.500 ............................
Less: Applicoble cost ond expenses * Chorges

tncome

225

P22,500

Pl3,5OO

................."............

,125

3,375

20,2sa
P 2,250