Consignment Sales: Problem 9-1: True or False
Consignment Sales: Problem 9-1: True or False
Consignment Sales: Problem 9-1: True or False
Consignment Sales
Requirement (a):
1
Profit is computed as follows:
Requirement (b):
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):
Requirement (a):
(a)
Cost of goods sold is computed as follows:
Unit cost 1,000,000
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
3
(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
Commission (1,750,000)
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