Question
During the month of May 2011, the sales agency submits sales on account of P1,500,000 which was duly approved by the home office. Cost of
During the month of May 2011, the sales agency submits sales on account of P1,500,000 which was duly approved by the home office. Cost of merchandise shipped to fill the orders from customers obtained by the sales agency is P 800,000. Home office disbursements chargeable to the agency during the month are as follows:
Furniture and Fixtures P150,000
Manager's and salesmen's salaries P88,000
Rent 35,000
On May 31, the sales agency working fund is replenished: paid vouchers submitted by the sales agency amounted to P42,000. Sales agency samples are useful until December 31, 2011, which at that time, are believed to have a salvage value of 15% of cost. Furniture are depreciated at 30% per annum
What is the net profit of the AGENCY for the month of May 2011?
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