Vinna P. Zabate BSA-3
M6 Consignment Sales
Engage: Kaya mo!
Schindler Co. and Paralax
A. Profit recognized by Schindler on the consignment arrangement.
Net remittance
₱232,000
Freight out
16,000
Installation costs
8,000
Total
256,000
Divided by: (100% - 20%)
80%
Gross selling price of goods sold
320,000
Multiplied by commission rate
20%
Commission
64,000
Gross selling price of goods sold
Less: Cost of goods sold [(16 x 10,000) + (16 x 3,000/20)]
Gross profit
Less: Freight out
Installation costs
Commission
Profit
B. Total cost of the unsold water heaters.
Unit cost
Freight cost per unit (3,000/20)
Total unit cost
Multiplied by unsold units (20-16)
Cost of unsold units
₱320,000
162,400
157,600
16,000
8,000
64,000
₱69,600
₱10,000
150
10,150
4
₱40,600