exapmple:

Broadway Custom Muffler Manufacturing shipped 45 custom mufflers at a cost of $95.00 each to Charlie Gardell's Hot Rod Shop. The mufflers were shipped August 1, 2022 on consignment. Broadway incurred $180 of freight related costs in shipping the mufflers to Charlie. The consignment agreement requires Charlie Gardell's Hot Rod Shop to sell and install the mufflers at $249.00 each to customers only within Contra Costa County. Broadway pays a $75 commission to Charlie Gardell's Hot Rod Shop for each muffle sold and installed. In addition, Broadway allows Charlie a monthly advertising allowance of $200. The agreement also requires Charlie Gardell's Hot Rod Shop to submit an accounting at the end of each month showing the sales/installations for the month, and the inventory still on hand at month end. In addition to submitting the report, Charlie Gardell's Hot Rod Shop is required to remit full payment to Broadway for all mufflers sold/installed less commissions and monthly advertising allowance. The report received from Charlie Gardell's Hot Rod Shop for the month of Auguse 2021 indicated the following. Mufflers Sold/Installed 36 Mufflers on Hand 9 Required: a. Prepare a detailed calculation showing the value of Broadway's consignment inventory at August 31st. b. Prepare a detailed calculation of Broadway's profit on its consignment inventory for the month of August. c. Prepare a detailed calculation of the amount of cash Broadway is to receive from Charlie Gardell's Hot Rod Shop for the month of August. d. Reconcile Broadway's cash to be received, to its net profit. Chapter 18 Practice Quiz Solution a) The value of Rapco's consignment inventory at Nov 30th d) Reconcile Rapco's cash to be received to net profit Net Cash to Be Received Less Cost of Goods Sold Net profit $21,120$14,868$6,252