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Consignment Sales

The document discusses three problems involving consignment sales. The problems provide details on items consigned by one company to another, including costs and sales. They ask for calculations of inventory amounts, profits, commissions and remittances based on the details provided.

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andzie09876
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289 views

Consignment Sales

The document discusses three problems involving consignment sales. The problems provide details on items consigned by one company to another, including costs and sales. They ask for calculations of inventory amounts, profits, commissions and remittances based on the details provided.

Uploaded by

andzie09876
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CONSIGNMENT

SALES
Problem 1
ABC Corporation consigned ten (10) bags to XYZ Inc. These bags
had a cost of P10,800 each. Freight on the shipments amounting
to P7,200 was paid by ABC Corp. XYZ submitted an accounting
of sales stating that it has sold six (6) bags and remitted cash
amounting to P81,900 to ABC Corp. after deducting the
following:
Commission, 15% of sales: ?
Selling expenses: P5,400
Delivery and installation of items sold: P3,600
Cartage cost upon receipt of consigned goods: P900
Problem 1
Q1: The total consignment sales:

Q2: The commission earned on the sale of six (6) bags by XYZ,
Inc:

Q3: The consignor net profit:


Answer: 13,140
Q4: The cost of inventory on consignment to be reported by
ABC Corporation at the end of the period:
Answer: 46,440
Problem 2
Company X consigned 25 shirts to Company Y. The cost of the shirt is
P310 each. Company X paid the freight cost amounting to P500. The shirt
is to be sold at P500 each payable P100 in the month of purchase and P20
per month thereafter. Company Y’s commission on consigned goods is
20%.

Company Y was able to sell 15 shirts in July and 5 shirts in August. The
regular monthly collections by Company Y and the appropriate cash
remittances have been made to Company X at the end of each month. The
parties agreed that Company Y is allowed only to deduct a commission
based on the amount collected from consignment.
Problem 2
Q1: The cost of inventory on consignment in the hands of
Company Y:
Answer: 1,650

Q2: Company X’s net profit:


Answer: 1,400

Q2: Total remittance by Company Y:


Answer: 1,840
Problem 3
Company X consigned 12 cabinets, which costs P960 each, to
Company Y, which was to sell it for a 15% commission based on
selling price.

Company X paid freight cost amounting to P240 and reimbursed


Company Y P250 for its delivery to customers. On August 30,
2020, Company Y reported that it had sold 8 cabinets, 6 for cash
at P1,800 and 2 for credit basis at P2,160 of which it had
collected 20% as down payment.
Problem 3
Q1: The cost of inventory in the hands of Company Y:
Answer: 3,920

Q2: The net profit of Company X on consignment sales


Answer: 4,762

Q3: The amount remitted by Company Y to Company X


Answer: 9,146

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