Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On May 3, 2020, Sheffield Company consigned 90 freezers, costing $490 each, to Remmers Company. The cost of shipping the freezers amounted to $850

image text in transcribed

On May 3, 2020, Sheffield Company consigned 90 freezers, costing $490 each, to Remmers Company. The cost of shipping the freezers amounted to $850 and was paid by Sheffield Company. On December 30, 2020, a report was received from the consignee, indicating that 45 freezers had been sold for $730 each. Remittance was made by the consignee for the amount due after deducting a commission of 6%, advertising of $200, and total installation costs of $310 on the freezers sold. (Round answers to O decimal places, e.g. 5,275.) (a) Compute the inventory value of the units unsold in the hands of the consignee. Inventory value $ 995000 (b) Compute the profit for the consignor for the units sold. Profit on consignment sales $ 888040 (c) Compute the amount of cash that will be remitted by the consignee. Remittance from consignee $ 33310

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems The Crossroads of Accounting & IT

Authors: Donna Kay, Ali Ovlia

2nd Edition

132991322, 978-0132991322

More Books

Students also viewed these Accounting questions