Mohan consigned 400 packets of lip-sticks, each packet containing 100 lip-sticks. Cost price of…
Mohan consigned 400 packets of lip-sticks, each packet containing 100 lip-sticks.
Cost price of each packet was Rs. 300. Mohan spent Rs. 50 per packet as cartage,
freight, insurance and forwarding commission. One packet was lost on the way and
Mohan lodged claim with the insurance company and could get only Rs. 270 as
claim on average basis. Consignee took delivery of the rest of the packets and spent
Rs. 19,950 as other non-recurring expenses and Rs. 11,250 as recurring expenses. He
sold 370 packets at the rate of Rs. 6.50 per lip-stick. He was entitled to 2% commission
on sales plus 1% del credere commission.
You are required to calculate the cost of stock at the end, cost of abnormal loss and profit and loss on consignment.