ENABLING ASSESSMENT

1. On December 1, 2020, CCN Corporation consigned 500 video players costing 600 per unit and retailing
for 1,000 per unit to CCO store. Freight cost of 5,500 were paid by the consignor. On December 20,
CCN Corp. sent a mechanic to CCO store to install safety devices on 200 players which have not been
sold. The costs of this alteration were parts from inventories 6,000, cash expenditure for labor 4,000.
CCN Corp thereafter increased the unit retail price to 1,100 for the remaining 200 players. On
December 31, the CCO store remitted 364,500 to CCN corp in full settlement to date after deducting a
commission of 10% of selling price on each player sold and 4,500 for delivering the players sold.

● The number of units sold is

400

● The value of the inventory on consignment to be reported on the statement of financial position
of the consignor is
66100

● The consignment profit is

115100

2. Assume the following information:

❖ Super Sale Inc sent 10 units of computer on consignment to We can Sell It Company. The unit
cost is P25,000 and the unit selling price is P40,000.
❖ Super Sale paid shipping costs of P2,500.
❖ We Can Sell It paid a reimbursable advertising cost of P10,000.
❖ Five computers were sold for P200,000.
❖ Commission of 10% of sales was given to We Can Sell It.
❖ We Can Sell It remitted amount due to Super Sale, Inc.

● Consignment profit is
43750

● The cost of inventory on consignment is

126250

3. On May 1, 2021, Subic Co. paid 5,000 for the insurance of consigned goods shipped to a consignee
and paid 7,000 for the freight. Additionally, Subic advanced 5,000 as part of the commission that will be
due when the consignee sells the goods. The consigned goods costs Subic 50,000 and will be sold at
60% above cost. . All goods were sold by the consignee at the end of the month. Remittance was made
net of 10% commission on sales.

● The total amount of inventory that Subic should report for the consigned goods on May 1, 2021
is
62000

● The consignment profit amounted to

10000

● The remittance amounted to

72000