On May 3, 2017, Bridgeport Company consigned 100 freezers, costing $460 each, to Remmers Company. The cost of shipping the freezers amounted to $910 and was paid by Bridgeport Company. On December 30, 2017, a report was received from the consignee, indicating that 50 freezers had been sold for $750 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 $320 on the freezers sold.
(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.
No. | Particulars | Amount |
(a) | Cost of Refrigerators (460*100) | $46,000 |
Transportation | 910 | |
Total | $46,910 | |
Inventory value of the units unsold in the hands of the consignee ($46910*50/100) | $23,455 | |
(b) | Sales (50*750) | $37,500 |
Cost of Refrigerators (Including transportation cost) | 23,455 | |
Commission (6% of Sales) (37500*6%) | 2250 | |
Advertising | 200 | |
Installation | 320 | |
Profit for the consignor for the units sold | $11,275 | |
(c) | Sales | $37,500 |
Commission | (2250) | |
Advertising | (200) | |
Installation | (320) | |
Amount of cash that will be remitted by the consignee | $34,730 |
On May 3, 2017, Bridgeport Company consigned 100 freezers, costing $460 each, to Remmers Company. The...
On May 3, 2017, Oriole Company consigned 90 freezers, costing $520 each, to Remmers Company. The cost of shipping the freezers amounted to $820 and was paid by Oriole Company. On December 30, 2017, a report was received from the consignee, indicating that 45 freezers had been sold for $690 each. Remittance was made by the consignee for the amount due after deducting a commission of 6%, advertising of $210, and total installation costs of $340 on the freezers sold....
On May 3, 2020, Tamarisk Company consigned 80 freezers, costing $540 each, to Remmers Company. The cost of shipping the freezers amounted to $920 and was paid by Tamarisk Company. On December 30, 2020, a report was received from the consignee, indicating that 40 freezers had been sold for $690 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 $350 on the freezers sold....
On May 3, 2020, Marin Company consigned 70 freezers, costing $450 each, to Remmers Company. The cost of shipping the freezers amounted to $890 and was paid by Marin Company. On December 30, 2020, a report was received from the consignee, indicating that 35 freezers had been sold for $740 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 $330 on the freezers sold....
Current Attempt in Progress On May 3, 2020, Pharoah Company consigned 100 freezers, costing $510 each, to Remmers Company. The cost of shipping the freezers amounted to $920 and was paid by Pharoah Company. On December 30, 2020, a report was received from the consignee, indicating that 50 freezers had been sold for $740 each. Remittance was made by the consignee for the amount due after deducting a commission of 7%, advertising of $180, and total installation costs of $310...
Help System Announcements CALCULATOR PRINTER VERSION BACK NEXT Question 1 On May 3, 2017, Teal Company consigned 60 freezers, costing $470 each, to Remmers Company. The cost of shipping the freezers amounted to $780 and was paid by Teal Company. On December 30, 2017, a report was received from the consignee, indicating that 30 freezers had been sold for $800 each. Remittance was made by the consignee for the amount due alter deducting a commission of 6%, advertising of $200,...
(1) Richardson Company sells tablet PCs bundled with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. Richardson's bundle includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $600. Richardson sells the tablet, internet access service, and service plan independently for a standalone...
Generally, which inventory costing method approximates most closely the current cost for each of the following? 1. Cost of goods sold Ending inventory LIFO FIFO 2. Lifo Lifo 3. Fifo Fifio 4. Fifo Lifo Marsh Company had 150 units of product A on hand at January 1, year 2, costing $21 each. Purchases of product A during the month of January were as follows: Units Unit cost Jan. 10 200 $22 18 250 23 28 100 24 A physical count on...