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Activity-Chapter 7: Ans. None of These Solution

Pete Electrical Shop received 300 bread toasters from Marion Trading on consignment to sell at 50% above cost with a 15% commission. Pete sold 200 units and repaired 100 units that had electrical defects at a cost of $2,000. When settling the consignment, Pete remitted $64,980 to Marion after deducting commission, delivery expenses for the sold units, and repair costs. The document provides calculations to determine the profit on units sold and value of the remaining inventory on consignment.

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Randelle James Fiesta
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2K views1 page

Activity-Chapter 7: Ans. None of These Solution

Pete Electrical Shop received 300 bread toasters from Marion Trading on consignment to sell at 50% above cost with a 15% commission. Pete sold 200 units and repaired 100 units that had electrical defects at a cost of $2,000. When settling the consignment, Pete remitted $64,980 to Marion after deducting commission, delivery expenses for the sold units, and repair costs. The document provides calculations to determine the profit on units sold and value of the remaining inventory on consignment.

Uploaded by

Randelle James Fiesta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ACTIVITY-CHAPTER 7

On January 1, 20x1, Pete Electrical Shop received from Marion Trading 300 pieces
of bread toasters. Pete was to sell these on consignment at 50% above cost, for a
15% commission on the selling price. After selling 200 pieces, Pete had the
remaining unsold units repaired for some electrical defects for which he spent
₱2,000. Marion subsequently increased the selling price of the remaining units to
₱330 per unit. On January 31, 20x1, Pete remitted ₱64,980 to Marion after
deducting the 15% commission, ₱850 for delivery expenses of sold units, and
₱2,000 for the repair or 100 units.
The consigned goods cost Marion Trading ₱200 per unit, and ₱900 had been paid to
ship them to Pete Electrical Shop. All expenses in connection with the consignment
were reimbursable to the consignee.

1. The consignment profit on the units sold was


a. 12,200 b. 12,880 c. 13,000 d. None of these
Ans. None of these
Solution:

Remitted P64,980
Unsold Units 2,000
Delivery Expenses 850
Total 67,830
Multiply by: 15%
Profit on the units sold P10,174.50

2. The value of inventory on consignment was


a. 8,120 b. 8,800 c. 8,920 d. None of these
Ans. None of these
Solution:

Per unit 330


Multiply by: 100
Total 33,000
Multiply by: 15%
Total 4,950
Add: 10,174.50
Value of inventory on consignment 15, 125.50

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