CONSIGNMENT SALES

1. On August 1, 2019, JBD, Inc. consigned to Mags Store 10 ladies’ handbags costing P3,000 each, paying
freight charge of P3,000. At the end of the month, Mags Store reported sales of 6 handbags at P6,000
each and expenses incurred of 2,500, and remitted the net proceeds due to JBD after deducting a 20%
commission. How much net income did JBD realize in August on the consignment?

a. P7,500 net income c. P6,700 net loss

b. P6,500 net income d. P6,500 net loss

2. Using the same information in No.1, what is the total cost of inventory of unsold handbags:

a. P12,000 c. P14,200
b. P13,200 d. P15,000

3. On November 1, 2019, the Western Appliance Center ships five (5) of its appliances to the ABC Store
on consignment Each unit is to be sold arP25,000 payable P5,000 in the month of purchase and P1,000
per month thereafter. The consignee is to be entitled to 20% of all amounts collection consignment
sales. ABC Store sells three (3) appliances in November and one (1) on December. Regular monthly
collections are made by the consignee, and appropriate cash remittances are made to the consignor at
the end of each month. The cost of the appliances shipped by the consignor was P15,500 per unit. The
consignor paid shipping costs to the consignee totaling P5,000. The cost of inventory on consignment on
December 31, 2019 is:

a. P15,500 c. P19,600
b. P16,500 d. P24,500

4. Using the same information in No.3, the profit on consignment for 2019 is:

a. P29,400 c. P15,000
b. P15,500 d. P14,000

5. Using the same information in No.3, the total amount remitted to consignor the year 2019 is:

a. P23,000 c. P12,000
b. P18,400 d. P6,400

6. On September 5, 2019, the Heth Computers consigned 30 apple computer units, costing P80,000
each, to Abet, Inc. The units were to be sold on either cash or credit basis at a commission of 15% of net
sales. The consignor paid freight of P 18,000 on the shipment. On September 11, the consignee received
the goods. Sales were made as follows

• September 15: 10 units for cash at P 130,000 each.

• September 27: 12 units on account at P 140,000 each

On September 30, 2019, a sales allowance of P20,000 was given to a charge customer for a defective
unit. On October 10, 2019, a receivable balance of P70,000 was determined to be uncollectible. On
October 11, 2019, the consignee made the proper remittance. The amount due from Abet, Inc. is

a. P2,980,000 c. P2,536,000
b. P2,890,000 d. P2,446,000

7. Using the same information in No. 6, the consignment profit (loss) is:

a. P464,000 c. P554,000
b. P484,000 d. P672,800

8. The cost of inventory on consignment is:

a. P640,000 c. P664,800
b. P644,800 d. P708,000
9. On June 1, DD Company shipped twenty-five DVD to BB View Store on consignment. The DVD is to be
sold at an advertised price of P200 per item. The cost of each DVD to the consignor is P100.The
consignor paid P75 to ship the merchandise. Commission is to be 25% of sales price. During the month,
two DVD were returned.

On June 30, BB View Store remitted the amount due to consignor after deducting commission of P400.
The amount remitted by BB View Store is:

a. P1,100 c. P1,200
b. P1,600 d. P2,000

10. The consignment profit is:

a. P370 c. P720
b. P415 d. P800

11. The cost of inventory on consignment amounted to:

A P1,400 c. P1,545
b. P1,550 d. P1,500