Question
On May 3, 2020, Marigold Company consigned 80 freezers, costing $490 each, to Remmers Company. The cost of shipping the freezers amounted to $870 and
On May 3, 2020, Marigold Company consigned 80 freezers, costing $490 each, to Remmers Company. The cost of shipping the freezers amounted to $870 and was paid by Marigold Company. On December 30, 2020, a report was received from the consignee, indicating that 40 freezers had been sold for $670 each. Remittance was made by the consignee for the amount due after deducting a commission of 6%, advertising of $210, and total installation costs of $300 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 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started