In: Accounting
On May 3, 2020, Pharoah Company consigned 90 freezers, costing
$490 each, to Remmers Company. The cost of shipping the freezers
amounted to $850 and was paid by Pharoah Company. On December 30,
2020, a report was received from the consignee, indicating that 45
freezers had been sold for $730 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 $310 on the
freezers sold.
(Round answers to 0 decimal places, e.g.
5,275.)
(a) Compute the inventory value of the units
unsold in the hands of the consignee.
Inventory value |
$enter the inventory value in dollars |
(b) Compute the profit for the consignor for the
units sold.
Profit on consignment sales |
$enter the profit on consignment sales in dollars |
(c) Compute the amount of cash that will be
remitted by the consignee.
Remittance from consignee |
$enter the amount of cash that will be remitted by the consignee rounded to 0 decimal places |