mounted to $890and was paid by Kingbird Company. On December 30, 2020, a report w hat35freezers had been sold for $740each. Remittance was made by the consignee for t f6%, advertising of $200, and total installation costs of $330on the freezers sold.
mounted to $890and was paid by Kingbird Company. On December 30, 2020, a report w hat35freezers had been sold for $740each. Remittance was made by the consignee for t f6%, advertising of $200, and total installation costs of $330on the freezers sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![On May 3, 2020, Kingbird Company consigned 70freezers, costing $450each, to Remmers Company. The cost of shipping the freezers
amounted to $890and was paid by Kingbird Company. On December 30, 2020, a report was received from the consignee, indicating
that35freezers had been sold for $740each. Remittance was made by the consignee for the amount due after deducting a commission
of6%, advertising of $200, and total installation costs of $330on 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 $
(b) Compute the profit for the consignor for the units sold.
Profit on consignment sales $
(c) Compute the amount of cash that will be remitted by the consignee.
Remittance from consignee
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F14dae64d-89b3-4698-a885-40af433001f1%2F5c17e7d6-cd28-4a2e-8f59-c9b6bbd1df36%2F7i8801f_processed.png&w=3840&q=75)
Transcribed Image Text:On May 3, 2020, Kingbird Company consigned 70freezers, costing $450each, to Remmers Company. The cost of shipping the freezers
amounted to $890and was paid by Kingbird Company. On December 30, 2020, a report was received from the consignee, indicating
that35freezers had been sold for $740each. Remittance was made by the consignee for the amount due after deducting a commission
of6%, advertising of $200, and total installation costs of $330on 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 $
(b) Compute the profit for the consignor for the units sold.
Profit on consignment sales $
(c) Compute the amount of cash that will be remitted by the consignee.
Remittance from consignee
$
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education