Question
On May 3, 2020, Norman Company consigned 80 freezers, costing $400 each, to Tomkins Company. The cost of shipping the freezers amounted to $670 and
On May 3, 2020, Norman Company consigned 80 freezers, costing $400 each, to Tomkins Company. The cost of shipping the freezers amounted to $670 and was paid by Norman Company. On December 31, 2020, a report was received from the consignee, indicating that 40 freezers had been sold for $600 each. Remittance was made by the consignee for the amount due after deducting a commission of 5%, advertising of $150, and total installation costs of $260 on the freezers sold.
Instructions
(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.
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