1.a.

P585,000
Sales P1,700,000
Less Charges:
Cartage-in P 75,000
Commission 340,000
Advertisement _200,000 _615,000
Due to Consignor P1,085,000
Less: Advances __500,000
Amount remitted P 585,000

1.b P290,000
Sales P1,700,000
Less: Consignor’s charges:
Cost (P2,000,000 x 4/10) P 800,000
Freight-out (P100,000 x 4/10) __40,000 840,000
Consignee’s charges:
Cartage-in (P75,0000 x 4/10) P 30,000
Commission 340,000
Advertisement _200,000 __570,000
Consignment profit P 290,000

2. P213,006
Sales on consignment is first determined by using an algebraic equation as shown below:
Let X = Sales
.15X = Commission

Equation (from the Account Sales format):

Sales – (Commission + Expenses) = Remittance
X - (.15X + P165 ) = P1,365,000
.85X = P1,365,165
X = P1,606,076

The consignment profit can now be computed as follows:

Sales P1,606,076
Cost and expenses:
Cost of goods (6 x P180,000) P1,080,000
Freight-out (6/10 x P120,000) 72,000
Commission (15% x P1,606,076) 240,911
Marketing expenses 90
Delivery and installation 60
Cartage cost (6/10 x 15) __ 9 _1,393,070
Consignment Profit P 213,006

3. P2,560,000 is the amount to be remitted as determined from the following Account Sales:
Sales:
Cash (2 x P1,500,000) P3,000,000
Credit Sales (1,800,000 x 25%) __450,000 P3,450,000
Less: Consignee’s charges
Commission (15% x P4,800,000) P 720,000
Delivery expense __170,000 __890,000
Remittance P2,560,000

The consignment profit is P1,390,0000 determined as follows:

Sales:
Cash (2 x P1,500,000) P3,000,000
Credit Sales (1 x 1,800,000) _1,800,000 P4,800,000
 Cost and expenses:
Cost of goods (3 x P800,000) P2,400,000
Trucking cost (3/5 x P200,000) 120,000
Commission (15% x P4,800,000) 720,000
Delivery expenses ___170,000 _3,410,000
Consignment profit P1,390,000

4. P348,000 is computed as follows:

Sales P2,100,000
Cost and expenses:
Cost of goods (7 x P200,000) P1,400,000
Freight-out (7/10 x P60,000) 42,000
Advertising 100,000
Commission (10% x P2,100,000) __210,000 _1,752,000
Consignment Profit P 348,000
P618 is determined as follows:
Cost of goods (3 x P200,000) P600,000
Freight –out (3/10 x P60,000) __18,000
Cost of inventory on consignment P618,000

5. The P172 cash remittance is determined by preparing an Account Sales as shown below:
Gross accounts receivable (70% x P15,000) x 80% P8,400
Less: Sales discount (P10,500 x 80%) 2% ___168
Collections P8,232
Less: Charges
Commission (15% x P8,400) P1,260
Expenses 800
Advances _6,000 _8,060
Cash Remittance __P172

Cost of unsold units is P39,000 determined as follows:

Cost of goods (30% x P10,000) P 3,000
Add: Freight charge (30% x P120,000) _36,000
Cost of unsold units P 39,000

6. The total amount remitted is P184,000 computed as follows:

Collections:
May sales – 3 units:
May (3 x P50,000) P150,000
June (3 x P10,000) __30.000 P180,000
June sales – 1 unit:
June (1 x P50,000) _50,000
Total collections P230,000
Less: Commission (20% x P230,000) __46,000
Total Remittance P184,000

The consignment profit is P140,000 determined as follows:

Sales (4 x P250,000) P1,000,000
Less: Cost and expenses:
Cost of goods (4 x P155,000) P 620,000
Shipping cost (4/5 x P50,000) 40,000
Commission (20% x P230,000) _46,000 __706,000
Consignment Profit P 294,000
7. The consignment profit is P290,000 computed as follows:
Sales (8x P200,000) P1,600,000
Less: Cost and expenses:
Cost (8 x P100,000) P 800,000
Shipment cost (10/25 x P75,000) 30,000
Commission (25% x P1,600,000) 400,000
Expenses _ _80,000 _1,310,000
Consignment Profit P 290,000

Cost of inventory is P1,545,000 determined as follows:

Cost (15 x P100,000) P1,500,000
Add: Shipment cost (15/25 x P75,000) ___45,000
Total _P1,545,000

8. P1,200,000
Sales (6 x P400,000) P2,400,000
Less:
Applicable freight: (6/10 x 240,000) P144,000
Advertising expense 150,000
Commission 480,000
Net income _426,000 _1,200,000
Cost of goods sold on consignment P1,200,000

9. The number of units sold is to be computed first as follows:

Selling price per unit P1,500,000
Multiply by per cent of commission _____15%
Commission per unit P 225,000

Number of units sold by consignee:

Total commission reported = P3,375,000 = 15 units
Commission per unit = P225,000

The amount remitted to consignor is P7,650,000 determined as follows:

Sales: (15 x P1,500,000) P22,500,000
Less: Consignee’s expenses
Advertising P2,250,000
Delivery expense 1,125,000
Commission _3,375,000
Total consignee’s expenses _6,750,000
Amount due to consignor P15,750,000
Less; Advance applicable to units sold:
Advance per unit: P900,000 x 60% P540,000
Multiply by number of units sold ___15
Total applicable advance deductible _8,100,000
Amount remitted to consignor by Dave Company P 7,650,000

The consignment profit is P2,250,000 computed as follows:

Sales: (15 x P1,500,000) P22,500,000
Less: Cost and expenses applicable to units sold:
Cost of units sold:
15 units x P900,000 P13,500,000
Advertising 2,250,000
Delivery expense 1,125,000
Commission __3,375,000
Total cost and expenses applicable to units sold _20,250,000
Consignment profit of Anton Corporation P 2,250,000

10. Profit, P5,278,000; Cost of inventory, P1,000,000

Consignee’s remittance P6,498,000
Add: Delivery expense P 85,000
 Repairs _200,000 ____285,000
Total, equal to 85% of sales P6,783,000

Total sales (P6,783,000 / 85%) P7,980,000

Less: Sales at “old” price @ P30,000 _6,000,000 200 units
Sales at “new” price, P33,000 P1,980,000 _60 units
Total units sold 260 units

The consignment profit is P5,278,000 computed as follows: and the cost of inventory on consignment can
now be computed as follows:
Sales, 260 units P7,980,000
Less: Applicable costs and expenses:
Cost of sales: 260 x P20,000 P 520,000
Shipping: P900,000 x 260/300 780,000
Repairs: P200,000 x 60/100 120,000
Delivery expense 85,000
Commission – 15% of selling price 1,197,000 _2,702,000
Consignment profit P5,278,000
The cost of inventory on consignment is P1,000,000 computed as follows:
Cost: 40 x P20,000 P 800,000
Deferrable expenses:
Shipping: P900,000 x 40/300 P120,000
Repairs: P200,000 x 40/100 __80,000 __200,000
Total value of inventory on consignment P1,000,000

11. 1,500
Units on consignment, December 31, 20x5 1,200
Units sold by consignee in 20x5: P58,590/P9 _6,510
Total 7,710
Less: Units shipped on consignment in 20x5 _6,210
Units on consignment, December 31, 20x4 _1,500

12. P780
Sales (60 x P99) P5,940
Less applicable cost and expenses:
Cost of sales: (50 x 60) P3,000
Packing: (170 x 60/100) 102
Shipping: (400 x 60/100) 240
Freight: (60 x 60/100) 36
Commission: (5,940 x 30%) _1,782 _5,160
Consignment profit P 780

13. P4,380
First, sales is to the computed as follows:
Consignee’s remittance P27,300
Add back deductions for:
Cartage P 300
Advertising 1,800
Delivery and installation _1,200 __3,300
Selling price, net of 15% commission P30,600
Selling price, P30,600/.85 P36,000

The consignment profit can now be computed as shown below:

Sales P36,000
Less applicable cost and expenses:
Cost of units sold: (3,600 x 6) P21,600
Freight: (2,400 x 6/10) 1,440
Cartage: (300 x 6/10) 180
Advertising 1,800
 Delivery and installation 1,200
Commission: (36,000 x 15%) __5,400 _31,620
Consignment profit P 4,380

14. Net loss, P1,400

Sales P72,000
Less: Cost and expenses:
Cost (72,000 x 87.5%) P63,000
Freight-out (2,000 x 6/10) 1,200
Commission 7,200
Selling expenses 800
Installation and delivery __1,200 __73,400
Net Loss ___(P1,400)