cs ICARE Accountancy Review wo Innovative + Competent * Responsive = PROBLEM SOLVING Use the following information for the next two questions: On November 1, 2025, Psalm Company shipped five of its appliances to the Trisha Company on consignment. Each unit is to be sold at P50,000 payable P10,000 in the month of purchase, and P2,000 per month thereafter. ‘The consignee is to be entitled to Trisha Company sells three appliances in November and one in December. Regular monthly collections are made by 20% of all amounts collected on consignment sale the consignee and appropriate cash remittances are made to the consignor at the end of cach month, The cost of the appliances is shipped by the consignor was P31,000 per unit. ‘The consignor paid shipping costs to the consignee totaling 10,000. 1. How much is the total collection at the end of 2025? 2. How much is the total amount remitted to the consignor for the year 2025? Use the following information for the next three questions QU Inc. consigned twelve refrigerators to PRP. The refrigerators cost P 12,000 each and the consignor paid P1,440 for freight out, The consignee subsequently rendered an account sale for five units sold at P 15,400 each, and deducted the following items from the selling price: 10% commission) Marketing expense (based on commission) 10% Delivery and installation (on each unit sold) P60 3. How much is the commission‘ 4, How much was the net profit of the consignor on the five refrigerators sold? 5, How much is the remittance? Use the following information for the next two questions On Jan 1, LM9 Electrical shop received from GO6 Trading 300 pieces of bread toasters. LMO9 was to sell these on consignment at 50% above cost, for a 15% commission on the selling price. After selling 200 pieces, LM9 had the remaining unsold units repaired for some electrical defects for which he spent P10,000. GO6 subsequently increased the selling price of the remaining units to P1,650 per unit. (On Jan 31, LM9 remitted P324,900 to GO6 after deducting the 15% commission, P4,250 for delivery expenses of sold units, and P 10,000 for the repair of 100 units. Thecs ICARE Accountancy Review oe Innovative + Competent * Responsive = consigned goods cost GO6 Trading P1,000 per unit, and P4,500 had been paid to ship them to LM9 electrical shop. All expenses with the consignment were reimbursable to the consignee. 5. How much is the profit on consignment? 6, How much is the cost of the inventory on consignment in the hands of GO6 Co? Use the following information for the next three questions On January 1, 2025, MMM entered into a consignment arrangement with WWW. The consignment arrangement provides that WWW is entitled to 5% commission based on sales. MMM manufactured 100 boxes of product at manufacturing cost of P400,000 On July 1, 2025, MMM shipped through a common carrier 30 boxes of consigned goods to WWW. The common carrier collected the freight amounting to P6,000 from WWW. For the year ended December 31, 2025, WWW sold on cash 20 boxes of consigned goods to final consumers at MMM's predetermined price of P6,000 per box. 7. What is the net income to be reported by MMM for the period ended December 31, 2025? 8. Using the same data in preceding number, what is the net remittance to be made by WWW to MMM as of December 31, 2025? Use the following information for the next three questions In 2025, KKK Co. shipped 10 units of washing machine to a BIB2 Co., a retailer, on consignment. The goods cost P30,000 each and are to be sold at 40% above cost of merchandise excluding directly attributable costs/additional capitalizable costs. KKK Co. paid freight of P15,000 to ship the goods to BIB2 Co. In addition, KKK Co, also paid insurance, handling and cartage fee relating to the shipment totaling P5,000. During the year, BIB2 Co. spent P2,000 for local advertising and was able to sell 6 units of the consigned goods. B1B2 Co, also paid P12,000 for delivery and installation of the goods to the customers. A unit with a minor H7Tect was retumed to KKK Co. and P3,000 was paid by BIB2 Co. for freight to ship the returned goods, Both parties agreed that B1B2 Co. is to receive 15% of the total sales as commission and be reimbursed for all the payments made that are chargeable to KKK Co. 9. How much should be reported by KKK Co. as inventory out on consignment? 10. How much is the cash remittance of B1B2 Co. to KKK Co.? 11. How much is the net income related to this consignment sales?cs ICARE Accountancy Review oe Innovative + Competent * Responsive = Use the following information for the next three questions On January 1, 2025, H7T Co. shipped 50 units of goods costing P20,000 each on consignment basis to BIB2 Co. to be sold at P15,000 each. The agreement provides that the consignee is to be provided 10% commission. Furthermore, it was also agreed that the consignee will advance 50% of the cost of the oven which is to be applied to periodic remittances in proportion to the units sold. Any expense incurred by the consignor related to the consigned goods are also deductible from the remittance. H7T Co. incurred P10,000 in shipping these goods to the consignee. On March 31, 2025, the consignee reported sales with the following expenses: advertising P3,000; delivery expenses to customers of P200 per unit; commission of P60,000. The remittance of eash was made on the same date. 12. How much should be reported by H7T Co. as inventory out on consignment? 13, How much was the remittance received by H7T Co.? 14, How much is the net income related in the consignment sales? Use the following information for the next three questions 555 Co. consigned 700 units of goods costing P700 each to 888 Co. to be sold to customers at P2,000 per unit, The tenor of the contract states that 888 Co. is entitled to a 20% commission on units sold and reimbursement of any expense paid in relation to the contract. 555 Co. paid P28, 000 worth freight and P7,000 insurance for the shipment. At the end of the month, 88 Co. reported 195 units are still on hand. 888 Co. remitted the available cash to 555 after deducting commission of P200, 000 and advertising cost of P36, 000. 15. How many units were sold by 888 Co.? 16. How much was the remittance received by 555 Co.’ 17, How much is the net income related to this consignment sales? -END-