TRANSACTIONS CONSIGNOR’S BOOK

1. Shipment of 100 sets of books at a cost of P Inventory on consignment 400,000

4,000. Merchandise inventory 400,000
2. Packaging charges of P 15,000 paid by Inventory on consignment 15,000
consignor. Cash 15,000
3. Shipment cost paid by the consignor total of P Inventory on consignment 40,000
40,000. Cash 40,000
4. Remittance received by consignee Cash 373,600
Cash – 373,600 Inventory on consignment 103,400
Inventory on consignment – 95,400 + 8,000 = Consignment sales 477,000
103,400
5. Cost of goods sold and related expenses Cost of consignment sales 373,200
Inventory on consignment 373,200
6. Cost of goods sold and related expenses and Consignment sales 477,000
closing entries. Cost of consignment sales 373,200
Consignment profit 103,800

Consignment profit 103,800

Income and Expense summary 103,800

Income and Expense summary 103,800

Retained earnings 103,800

3. Summary of Consignment Profit and Cost of Inventory on Consignment to be prepared by the

consignor.

Total Charges Identified With

Charges Consignment Consignment
Sales Inventory 
Sets 100 60 40
Charges by consignor:
Cost of consigned CD players 400,000 240,000 160,000
@4,000
Shipment Cost  40,000(100%) 24,000(60%) 16,000(40%)

Packaging charges 15,000 9,000(60%) 6,000(40%)

Charges by consignee:
Cartage 8,000(100%) 4,800(60%) 3,200(40%)
Commission 95,400 95,400 -

Total cost of consignment sales 558,400 373,200 185,200

Consignment sales(60x7,950) 477,000
Consignment Profit  103,800