Exercise 18-25

On May 3, 2020, Ivanhoe Company consigned 90 freezers, costing $530 each, to Remmers Company. The cost of shipping the freezers amounted to $850 and was paid by Ivanhoe Company. On December 30, 2020, a report was received from the consignee, indicating that 45 freezers had been sold for $720 each. Remittance was made by the consignee for the amount due after deducting a commission of 6%, advertising of $190, and total installation costs of $330 on the freezers sold. (Round answers to 0 decimal places, e.g. 5,275.) (a) Compute the inventory value of the units unsold in the hands of the consignee.

Inventory value

$enter the inventory value in dollars

(b) Compute the profit for the consignor for the units sold.

Profit on consignment sales

$enter the profit on consignment sales in dollars

(c) Compute the amount of cash that will be remitted by the consignee.

Remittance from consignee

$enter the amount of cash that will be remitted by the consignee rounded to 0 decimal places