Aircon, Inc. consigned ten one-horsepower air conditioning units to Argy Trading and paid P2,000 for the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Aircon, Inc. consigned ten one-horsepower air conditioning units to Argy Trading and paid P2,000 for the freight. The consignee is allowed a commission of 5% on sales. Argy Trading submitted the following report at the end of the period: Sales (6 units) Less: Advances to Aircon, Inc. Selling expenses Installation and delivery Commission Net remittance 10,000 800 1,200 7,200 72,000 19,200 52,800 The selling expenses and the installation and delivery costs are chargeable to Aircon. Aircon consistently marks-up its inventories at a 12.50% gross profit rate based on sales price. This does not reflect any freight. How much was Aircon's profit or loss on the consignment (5 points)? Aircon, Inc. consigned ten one-horsepower air conditioning units to Argy Trading and paid P2,000 for the freight. The consignee is allowed a commission of 5% on sales. Argy Trading submitted the following report at the end of the period: Sales (6 units) Less: Advances to Aircon, Inc. Selling expenses Installation and delivery Commission Net remittance 10,000 800 1,200 7,200 72,000 19,200 52,800 The selling expenses and the installation and delivery costs are chargeable to Aircon. Aircon consistently marks-up its inventories at a 12.50% gross profit rate based on sales price. This does not reflect any freight. How much was Aircon's profit or loss on the consignment (5 points)?
Expert Answer:
Answer rating: 100% (QA)
To determine Aircon Incs profit or loss on the consignment we need to calculate the cost of the cons... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
The name of each data Table in an Oracle Server database must be prefixed by the keyword or (True/False)
-
A 23-g bullet traveling 230m/s penetrates a 2.0 kg block of wood and emerges cleanly at 170m/s. If the block is stationary on a frictionless surface when hit, how fast does it move after the bullet...
-
Solve Prob. 8.48 assuming that force P is directed to the left. Problem 8.48: An 18-kg mass is hung from a lever which rests against a 10° wedge at A and is supported by a frictionless hinge at...
-
Use the Peclet number [Eq. (16-111a)] to determine which model (completely mixed or plug flow) is appropriate for the distillation column calculation at \(\mathrm{x}_{\mathrm{W}}=0.48\) in Problems...
-
Explain whether the following statements are true or false. a. Derivative transactions are designed to increase risk and are used almost exclusively by speculators who are looking to capture high...
-
A clinic's average and marginal cost per case is $400. It charges $600 per case and serves 1,000 customers. Its marketing team predicts that it will expand its sales to 1,250 if it cuts its price to...
-
This project will test your understanding of the Sage 50 Accounting application and your ability to apply the features of this application. You will be using many of the skills that you have acquired...
-
A sum of money is invested in compound interest at 15% per annum for three years. If the investment mode was simple interest instead, what should have been the rate of interest to earn the same...
-
Michele has undertaken an inventory of the electrical appliances throughout her business and discovers that some require cleaning and repair. Michele takes the appliances to Rolando the repairer,...
-
Using accrual accounting rules, ABC Co . delivers $ 1 , 0 0 0 worth of window washing services in January 2 0 2 2 and bills the client, who pays for the services in February 2 0 2 2 . How much in...
-
How should an employer considered the personal needs and development of employees when creating messaging? Supported your response by using a scholarly source(s) .
-
Explain the difference between journaling file systems and non-journaling file systems. What are the benefits and trade-offs of each approach in terms of data integrity and performance ?
-
On January 1, 2022, ABC Company purchased 1,000 of ZYX Company's common shares (15% of common shares outstanding) for $4,000, and paid transaction costs of $400. On February 1, 2022, ZYX paid a...
-
What is most critical to accomplishing the project objective?
-
What are the before image (BFIM) and after image (AFIM) of a data item? What is the difference between in-place updating and shadowing, with respect to their handling of BFIM and AFIM?
-
Listed below are 12 technical accounting terms discussed in this chapter: Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the...
-
The following is information concerning a product manufactured by Ames Brothers: Sales price per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $70 Variable cost per unit . . ....
-
Identify four ratios or other analytical tools used to evaluate profitability. Explain briefly how each is computed.
-
A cost sheet and partial finished goods ledger card for Leather Originals, a manufacturer of leather furniture, are provided in the Working Papers. Work independently to complete the following...
-
Krasnoy Tire, a maker of tires for cars, trucks, and tractors, is trying to determine how to account for various factory costs. The costs include the following: a. Wages earned by a factory...
-
Wilmington, Inc., manufactures heating systems. The company maintains a materials ledger for all direct materials. Instructions: 1. Prepare a materials ledger card for T-5 thermostats. The thermostat...
Study smarter with the SolutionInn App