Question
Wing Co. consigned eight printing machines to Wind Co. Each machine costs 1,000,000 and has a suggested retail price of 2,100,000. Wing paid 200,000 in
Wing Co. consigned eight printing machines to Wind Co. Each machine costs
1,000,000 and has a
suggested retail price of
2,100,000. Wing paid
200,000 in transporting the machines to the
consignee
'
s place of business. At the end of the period, Wind remitted
8,417,500 to Wing representing
collections on sales during the period, after deducting the following:
Commission (based on sales net of commission)
20%
Finder's fee (based on commission)
5%
Delivery, installation and testing (on each unit sold)
50,000
Materials generated from the testing were sold for
5,000 and included in the remittance to Wing Co.
Wing Co. appropriately reported ending inventory of
3,075,000 for the unsold consigned machines.
41.
How much is the commission earned 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