Seatwork

Consignment Sales

Name: ____________________________________ Section:_________

Date:________________
On June 1, Bruce Company shipped 25 television sets to Lee, Inc. on consignment. The sets are to be sold at an
advertised priced of P20,000. The cost of each set to the consignor was P10,000. The cost of shipment paid by the
consignor was P7,500. The consignor agreed to absorb the consignee's expenditure for freight and also to allow the
consignee P 1000 for delivery and installation of each set. Commission is to be 25% of the sale price. On June 30, Lee
submitted the following summary of consignment sales:

Sets received 25

Sets sold 8

Sets returned to consignor because of defect 2 10

Sets on hand 15

June 3-30 sales, 8 sets at P20,000

Charges:

Freight in P5,000

Deliveries and installation expenses 8,000

Commission, 25% of sales 40,000 P 53,000

P107,000

Remittance enclosed 25,000

Balance owed (collections from customer not yet made) P82,000

Compute the inventory value of the units unsold in the hands of the consignee (show solution)

a. 150,000 c. 154,500

b. 153,000 d. 157,500

Compute the profit for the consignor for the units sold (show solution)

a. 24,000 c. 27,000

b. 26,000 d. 70,000