5-On August 5, 2018, Famous Furniture shipped 40 dining sets on consignment to Furniture Outlet, Inc....

5-On August 5, 2018, Famous Furniture shipped 40 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $360 each. The cost of shipping the dining sets amounted to $3,600 and was paid for by Famous Furniture. On December 30, 2018, the consignee reported the sale of 30 dining sets at $850 each. The consignee remitted payment for the amount due after deducting a 6% commission, advertising expense of $600, and installation and setup costs of $780. The amount cash received by Famous furniture is

6-On August 5, 2018, Famous Furniture shipped 40 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $360 each. The cost of shipping the dining sets amounted to $1,800 and was paid for by Famous Furniture. On December 30, 2018, the consignee reported the sale of 30 dining sets at $850 each. The consignee remitted payment for the amount due after deducting a 6% commission, advertising expense of $600, and installation and setup costs of $780. The total profit on units sold for the consignor is

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Expert Solution

Answer :-

Answer:- The amount received by Famous Furniture is =$22,590

Explanation:- Amount received by Famous Furniture=Revenue from Consignment Sales- Commission Expense- Advertising expense- Installation and setup expense

= (30 dining sets*$850 each)* (100%-6%) -$600-$780

= (25,500*94%) - $ 600 - $ 780

= $23,970 - $600 - $780

= $22,590.

Cost of each dining set	$360
Number of dining set consigned	40
Cost of dining set consigned	*$14,400 (40$360)**
Add : Cost of shipping the dining sets	$1,800
Updated cost of dining set consigned	$16,200
Number of dining set consigned	40
Updated cost per dining set	$405 (16,200/40)
Number of dining set Sold	30
Updated cost per dining set	*$12,150 (30$405)**
Add : Consignee's commission on sales	$ 1,530 (30$8506%)
Add : Advertising Expense	$600
Add : Installation and setup costs	$780
Total cost of sales	$15,060
Total sale on dining set	$ 25,500 (30*850)
The Total profit on units sold for the consignor	$10,440 ($25,500-$15,060)

ekkarill92 answered 1 year ago

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