Question
On May 31, 2017, Wildhorse Company consigned 80 freezers, costing $500 each, to Novak Company. The cost of shipping the freezers amounted to $640 and
On May 31, 2017, Wildhorse Company consigned 80 freezers, costing $500 each, to Novak Company. The cost of shipping the freezers amounted to $640 and was paid by Wildhorse Company. On December 30, 2017, a report was received from the consignee, indicating that 40 freezers had been sold for $710 each. Remittance was made by the consignee for the amount due after deducting a commission of 8%, advertising of $430, and total installation costs of $510 on the freezers sold.
a) Calculate the inventory value of the units unsold in the hands of the consignee.
b) Calculate the profit for the consignor for the units sold.
c) Calculate the amount of cash that will be remitted by the consignee.
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