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consignement

CPT 742 views 4 replies

1000lts of oil wer consigned to a holesaler the cost being Rs.100/lts by incurring fright Rs  8,000.

10% of loss of oil unavoidable. 8000lts wer sold by the consignee.

the remaining stock of 1000 lts will b valued @ ???

a)1,12,000 b) 1,11,111 c)1,00,800 d)1,00,000

hw is unavoidable exp treated as ??

Replies (4)

sry 10,000 lts ...

The ans is a) 112,000 

The unavoidable loss is treated as normal loss and it is adjusted by inflating the cost of the consignment.

i.e.[ (Total cost of goods+freight)*Qty in stock] / (Total Qty - Normal Loss)

thus{ [(10,000*100)+8,000]*1,000} / (10,000 - 1,000)


Abnormal loss should be deducted from the stock or goods sent on consignment.

Below is the solution for your question

 

Particulars Quantity Amount
Total stock 10000 1000000
(+)freight       -       8000
Total 10000 1008000
(-)loss(10%)   1000        -
Total
9000
1008000

Now we came to know that for 9000ltrs the cost 1008000.whenever there is abnormal loss per unit cost in this case per litre cost increases let us see how much it has increased

per ltr = 1008000/9000 = 112per ltr

Given 1000ltr is remaining hence:

1000*112 = 112000rs is the amount of remaining stock.

x sends out goods1000 boxes costing 1lac to Y at cost+20%,consigner expensess fright 6000,insurance2000,Consignee exp : loading & unloading 10000,salary 6000,nd coomisson 2% on gross saleswhat will be the profit 3/4 th goods sold by consignee at 1lac?


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