On May 3, 2020, Sage Company consigned 80 freezers, costing $ 500 each, to Remmers Company. The cost of shipping the freezers amounted to $ 920 and was paid by Sage Company. On December 30, 2020, a report was received from the consignee, indicating that 40 freezers had been sold for $810 each. Remittance was made by the consignee for the amount due after deducting a commission of 5%, advertising of $ 220, and total installation costs of $ 300 on the freezers sold. (Round answers to 0 decimal places, eg. 5,275.) (a) Compute the inventory value of the units unsold in the hands of the consignee. Inventory value %24 20460 (b) Compute the profit for the consignor for the units sold. Profit on consignment sales 24 10260
On May 3, 2020, Sage Company consigned 80 freezers, costing $ 500 each, to Remmers Company. The cost of shipping the freezers amounted to $ 920 and was paid by Sage Company. On December 30, 2020, a report was received from the consignee, indicating that 40 freezers had been sold for $810 each. Remittance was made by the consignee for the amount due after deducting a commission of 5%, advertising of $ 220, and total installation costs of $ 300 on the freezers sold. (Round answers to 0 decimal places, eg. 5,275.) (a) Compute the inventory value of the units unsold in the hands of the consignee. Inventory value %24 20460 (b) Compute the profit for the consignor for the units sold. Profit on consignment sales 24 10260
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 6MC
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![On May 3, 2020, Sage Company consigned 80 freezers, costing $ 500 each, to Remmers Company. The cost of shipping the freezers
amounted to $ 920 and was paid by Sage Company. On December 30, 2020, a report was received from the consignee, indicating that
40 freezers had been sold for $810 each. Remittance was made by the consignee for the amount due after deducting a commission of
5%, advertising of $ 220, and total installation costs of $ 300 on the freezers sold.
(Round answers to O decimal places, e.g. 5,275.)
(a) Compute the inventory value of the units unsold in the hands of the consignee.
Inventory value
%24
20460
(b) Compute the profit for the consignor for the units sold.
Profit on consignment sales
%24
10260
(c) Compute the amount of cash that will be remitted by the consignee.
Remittance from consignee
%24
30260](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0506d55b-bb84-43f9-9218-6fc41e3ed9b6%2F5aeb11f7-22dd-43ac-a1e8-7c6fff92db7a%2Fufvo8nd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On May 3, 2020, Sage Company consigned 80 freezers, costing $ 500 each, to Remmers Company. The cost of shipping the freezers
amounted to $ 920 and was paid by Sage Company. On December 30, 2020, a report was received from the consignee, indicating that
40 freezers had been sold for $810 each. Remittance was made by the consignee for the amount due after deducting a commission of
5%, advertising of $ 220, and total installation costs of $ 300 on the freezers sold.
(Round answers to O decimal places, e.g. 5,275.)
(a) Compute the inventory value of the units unsold in the hands of the consignee.
Inventory value
%24
20460
(b) Compute the profit for the consignor for the units sold.
Profit on consignment sales
%24
10260
(c) Compute the amount of cash that will be remitted by the consignee.
Remittance from consignee
%24
30260
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