EXERCISE 2 PERPETUAL METHOD

CONSIGNMENT INCOME KEPT SEPARATE

CONSIGNOR'S
a. Consignment out
Shipment on consignment

14,000
14,000

b. Consignment out
Cash

500
500

h. Cash
Consignment out
Consignment out

CONSIGNOR
Cost
Freight

9,300
2,700
12,000

ANALYSIS OF CHARGES
SOLD
UNSOLD
TOTAL
12 units
8 units
20 units
8,400
5,600
14,000
300
200
500

CONSIGNEE
Cartage
Advertising
Commission
Installation

120
1,000
1,200
300
11,320

i. Consignment out
Consignment income

CONSIGNMENT INCOME NOT KEPT SEPARATE

CONSIGNOR'S
a. Goods on consignment
Inventory

80

5,880

200
1,000
1,200
300
16,900

680
680

14,000
14,000

b. Freight and Insurance cost

Cash

500

h. Cash
Cartage cost
Advertising
Commission
Installation
Consignment out

9,300
200
1,000
1,200
300

500

12,000

Cost of sales
Goods on consignment

8,400
8,400

Goods on consignment
Cartage cost
Freight and insurance cost
Income summary

960
80
200
680

ANALYSIS OF CHARGES
CONSIGNOR
Cost
Freight
CONSIGNEE
Cartage
Advertising
Commission
Installation

SOLD
UNSOLD
TOTAL
12 units
8 units
20 units
8,400
5,600
14,000
300
200
500

120
1,000
1,200
300
11,320

80

5,880

200
1,000
1,200
300
16,900

CONSIGNEE'S
a. Received 20 units of appliances from AB Manufacturing Co. at a
cost of P700 per unit

c. Consignment in
Cash

d. Consignment in
Advertising expense
Cash
e. Cash

200
200

1,000
200
1,200
12,000

Consignment in
f. Consignment in
Commission on consignment

12,000
1,200
1,200

g. Consignment in
Cash

300

h. Consignment in
Cash

9,300

300

9,300

CONSIGNEE'S
a. Received 20 units of appliances from AB Manufacturing Co. at a cost of P700 per unit

c. AB Manufacturing Co.
Cash

200

d. AB Manufacturing Co.
Advertising expense

1,000
200

200

Cash
e. Cash

1,200
12,000

Sales
f. Consignment in
Commission on consignment
Purchases

12,000
1,200
1,200
10,800

AB Manufacturing Co.

10,800

g. AB Manufacturing Co.
Cash

300

h. AB Manufacturing Co.
Cash

9,300

300

9,300

EXERCISE 4
CONSIGNMENT INCOME KEPT SEPARATE
CONSIGNOR'S
a. Consignment out
Shipment on consignment
b. Consignment out
Cash
h. Cash
Consignment out
OTHER COST
Consignment out

of P700 per unit

14,000
14,000
500
500
9,300
200
2,500
12,000

EXERCISE 3
J. REYES
Account Sales
Sold for the account of:
X Mfg. Corp.
Sales (38 @ P300)
Charges:
Freight
Cartage
Advertising
Transportation out
Commission 20% of Sales
Freight for returning defectives
Due to the consignor
Less: Advances
Balance
Remittance enclosed
Balance due
Items on Hand
Items returned

11,400
500
100
200
760
2,280
150

Consignment sales (38 units x 300)

Less Costs and Expenses
Consignor's charges
Cost of consigned goods @P160 per unit
Consignee's charges
Freight
Cartage
Commission
Advertising
Transportation out
Freight for returns
NET INCOME

3,990
15,390
0
15,390
15,390
0
7 units
5 units

11,400

6,080
430
86
2,280
200
760
150

3,906
1,414

Analysis of Charges
Consignor

SOLD
Cost

UNSOLD
TOTAL
6,080
1,120
7,200

Consignee
Freight
Cartage
Commission
Advertising
Transportation out
Freight for returns

430
86
2,280
200
760
150
9,986

70
14

1,204

500
100
2,280
200
760
150
11,190

EXERCISE 5
ACCOUNT SALES

CASH ADVANCE
40% of Selling price
SP = 200000
8000 PER UNIT OF 25 UNITS
SALES

80,000

224,000
28 UNITS @ 8000

CASH COLLECTED
26 UNITS @ 8000

208,000

COMMISSION
20% OF 208000

41,600

REMITTANCE
PROFIT

99,950
35,004

RETURNS

1 UNIT
SOLD

CONSIGNOR
COST

CONSIGNEE
FREIGHT
CARTAGE
AD
DELIVERY
COMMISSION
FREIGHT OUT

UNSOLD
28

140,000

5,000

1,450
116
200
600
41,600
30
183,996

50
4

CONSIGNMENT OUT
150,000
124,050

80,000
224,000
29,950

C.
B.
D.

80,000
1,500
120

G.
H.

41,600
200
600
30
99,950

I.
I.

CONSIGNMENT IN
E.

224,000

TOTAL
29
145,000

1,500
120
200
600
41,600
30

EXERCISE
1
SALES
CHARGES:

12000

Cartage
Advertising
Commission
Installation
DUE TO THE CONSIGNOR

200
1,000
1,200
300

2700
9300

2
B CO.
Cebu City
Account Sales
Sold for the account of:
AB Manufacturing Co.
Sales
Charges
Cartage
Advertising
Commission
Installation
Due to the consignor
Less: Advances
Balance
Remittance enclosed
Balance due
Items on hand

12000
200
1,000
1,200
300

CONSIGNOR
Cost
Freight

ANALYSIS OF CHARGES
SOLD
UNSOLD
TOTAL
12 units 8 units
20 units
8,400
5,600
14,000
300
200
500

CONSIGNEE
Cartage
Advertising
Commission
Installation

120
1,000
1,200
300
11,320

80

5,880

200
1,000
1,200
300
16,900

2700
9300
0
9300
9300
0
8 units

Consignment Sales (12 units x P1000)

Less cost and expenses:
Charges by Consignor:
Cost of consigned goods
Freight and insurance
Charges by Consignee
Cartage
Advertising
Commission
Installation
NET INCOME
6 Consignment Sales (12 units x P1000)
Less cost and expenses:
Charges by Consignor:
Cost of consigned goods
Freight and insurance
Charges by Consignee
Cartage
Advertising
Commission
Installation
NET INCOME

12000

8,400
300
120
1,000
1,200
300

8700

2620
680
12000

8,400
350
140
1,000
1,200
300

8750

2640
610