Gumapac, Nichol B.

BSA3101-BCE
20130148344 OCT. 8 2020

ASYNCHRONOUS ACTIVITY - OCT. 6, 2020 FOR BCE & BGE

1. The CCN Furniture Manufacturing   Company consigned 10 units of dining table to a
furniture dealer.  The manufacturing cost is P4,000 per piece.   Consignment profits are
not recorded separately by the company.  At the end of the month, the dealer reported a
sale of 4 units at P7,000 each and remitted the net sales proceeds after deducting the
following:   20% commission on units sold and P1,600 freight paid upon receipt of the 10
units.
Question 1 =  How much was the cash remitted to the consignor?
SALE (4*7000) 28000
LESS:
COMMISSION (20%*28000) (5600)
FREIGHT (1600)
CASH REMITTED 20800

Question 2 =   What is the balance of consignor’s inventory relative to the consigned goods?
UNSOLD UNITS 6
COST / PIECE 4000
INVENTORY BAL 24000
Question 3 =   How much was the net profit on consignment sales?
SALES 28000
LESS:
COGS (17600)
COMMISSION (5600)
NET PROFIT ON CONSIGNMENT 4800
2. On January 2, 2020, BEST BUY received from PHILACOR CORP.  300 pieces
of oven toasters.  BEST BUY was to sell these on consignment at 50% above cost per
piece, and to receive a 15% commission on the selling price.  After selling 200
units, BEST BUY had the remaining unsold units repaired for some electrical defects
and spent P2,000 for the said repairs.  PHILACOR CORP. consequently increased
the selling price of the remaining units to P330 per unit.  On January 31, BEST BUY
remitted P64,980 to PHILACOR after deducting 15% commission, P850 for delivery
expenses of sold units, and P2,000 for the repair of 100 units.  The consigned goods
cost PHILACOR P200 per unit and shipping cost of P900 had been paid to ship to
BEST BUY.  All expenses in connection with the consignment were reimbursable to
the consignee.

Question 4 = How much is the consignment sales?

CASH REMITTED 64980

DELIVERY EXPENSES 850
REPAIR OF 100 UNITS 2000
15% COMMISSION DIVIDED BY 85%
CONSIGNMENT SALES 79800

Question 5  =  How much is the consignment profit?

SALES 79800
LESS:
COGS (60900)
COMMISSION (11970)
PROFIT 6930
Question 6  =  What is the value of inventory on consignment?
REMAINING UNITS TO BE SOLD 100
COST PER UNIT X 330
TOTAL 33000
LESS: REPAIR 2000
TOTAL INVENTORY 31000
 3. CAC Manufacturing consigned 10 freezers   to NORTHERN TRADING.  These freezers
had a cost of P9,000 each.   Freight on the shipment was paid by CAC in the amount of
P6,000.   NORTHERN TRADING submitted an accountsales stating that it had sold 6
freezers and remitted the P68,250 balance due CAC after the following deductions from
the selling price of the freezers:  Commission, 15% of the selling price; marketing
expenses, P4,500;   Delivery and installation of items sold, P3,000; cartage cost paid
upon receipt of consignment, P750.

QUESTION 7 =HOW MUCH IS THE TOTAL SALES?

CASH REMITTED 68250
MARKETING EXPENSES 4500
DELIVERY AND INSTALLATION 3000
CARTAGE COST 750
COMMISSION OF 15% DIVIDED BY 85%
TOTAL SALES 90000

Question 8 = How much is the consignor’s net profit from the sale of the consigned
goods?
CONSIGNMENT SALES 90000
LESS:
COGS (6*9000) (54000)
FREIGHT OUT (6000*6/10) (3600)
CARTAGE COST (750*6/10) (450)
DELIVERY AND INSTALLATION (3000)
MARKETING EXP (4500)
COMMISSION EXP (90000*15%) (13500)
NET INCOME 10950

Question 9 = How much is the commission earned on the sale of the 6 freezers by
NORTHERN TRADING?

COMMISSION EARNED (90000*15%) 13500