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Sol. Man. - Chapter 9 - Consignment Sales - Acctg. For Special Transactions
Sol. Man. - Chapter 9 - Consignment Sales - Acctg. For Special Transactions
Sol. Man. - Chapter 9 - Consignment Sales - Acctg. For Special Transactions
Consignment Sales
Requirement (a):
1
Profit is computed as follows:
Requirement (b):
PROBLEM 3: EXERCISE
Solutions:
Requirement (a):
315,000 ÷ 700 books sold = 450 publisher’s suggested retail price per book
2
(a)
The cost of goods sold is computed as follows:
No. of books sold 700
Unit cost 300
Total 210,000
Freight (22 x 700) 15,400
Cost of goods sold 225,400
Requirement (b):
Requirement (c):
30
No. of unsold books
0
30
Unit cost before freight
0
90,00
Total 0
Freight (22 x 300) 6,600
96,60
Ending inventory 0
Requirement (a):
(a)
Cost of goods sold is computed as follows:
Unit cost 1,000,000
3
Freight per machine (200,000 ÷ 8) 25,000
Total unit cost 1,025,000
Multiply by: No. of machines sold 5
Cost of goods sold 5,125,000
(b)
The commission is computed as follows:
We will use the following formula for bonus after bonus:
B = P – [P ÷ (1 + Br)]
Requirement (b):
Total sales [2,100,000 x (8-3)] 10,500,000
(1,750,000
Commission )
Finder's fee (87,500)
Delivery, installation and testing (50,000 x 5) - 5,000 scrap (245,000)
Net remittance 8,417,500
Requirement (c):
Unit cost before freight 1,000,000
Freight per machine (200,000 ÷ 8) 25,000
Total unit cost 1,025,000
Multiply by: No. of unsold machines 3
Ending inventory 3,075,000
4
PROBLEM 6: MULTIPLE CHOICE - COMPUTATIONAL
1. A (See solution in the second requirement)
2. B
Solution
(a)
Cost of goods sold is computed as follows:
Total unit cost 1,025,000
No. of units sold 5
Cost of goods sold 5,125,000
5
(b)
The commission is computed as follows:
We will use the following formula for bonus after bonus:
B = P – [P ÷ (1 + Br)]
9. C
Solution:
Sales revenue (7,700 x 5) 38,500
(30,300
Cost of goods sold (6,000 x 5) + (720 x 5/12) )
Gross profit 8,200
(3,500
Commission based on sales net of commission (a)
)
(350
Marketing expense based on commission (3,500 x 10%)
)
(a)
We will use a formula similar to the formula of bonus after bonus:
38,50
Commission based on sales after 38,50 0
= -
commission 0 1+10
%
Commission based on sales after commission = 3,500
10. A
Solution:
Sales 38,500
Commission based on sales net of commission (3,500
6
)
(350
Marketing expense based on commission (3,500 x 10%)
)