Question
On May 3, 2020, Bramble Company consigned 90 freezers, costing $470 each, to Remmers Company. The cost of shipping the freezers amounted to $870 and
On May 3, 2020, Bramble Company consigned 90 freezers, costing $470 each, to Remmers Company. The cost of shipping the freezers amounted to $870 and was paid by Bramble Company. On December 30, 2020, a report was received from the consignee, indicating that 45 freezers had been sold for $750 each. Remittance was made by the consignee for the amount due after deducting a commission of 6%, advertising of $180, and total installation costs of $310 on the freezers sold.
(a) Compute the inventory value of the units unsold in the hands of the consignee.
(b) Compute the profit for the consignor for the units sold.
(c) Compute the amount of cash that will be remitted by the consignee.
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