Answer:
Inventory value of Unsold units: | |||||
Cost of units sent (750*100) | 75000 | ||||
Add: Shipping cost | 1500 | ||||
Total Cost of inventory | 76500 | ||||
Divide: Total Units sent | 750 | ||||
Cost per unit | 102 | ||||
Multiply: Units unsold (750-420) | 330 | ||||
Inventory value of Unsold units: | 33660 | ||||
Profit on Consignment: | |||||
Sales revenue of 420 units*150 | 63000 | ||||
Less: Cost of 420 units @102 | 42840 | ||||
Gross profit | 20160 | ||||
Less: Commission (63000*20%) | 12600 | ||||
Net Income on Consignment | 7560 | ||||
Cash to be remitted by consignee: | |||||
Sales revenue collected | 63000 | ||||
Less: Commission deducted | 12600 | ||||
Cash to be remitted by consignee: | 50400 | ||||
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On August 15, 2020, Japan Ideas consigned 750 electronic play systems, costing $100 each, to YoYo Toys Company. The cost of shipping the play systems amounted to $1,500 and was paid by Japan Ideas. On December 31, 2020, an account sales summary was receiv