On August 15, 2022, Didgeridoo consigned 500 electronic play systems, costing $100 each, to Toys R U Company. The cost of shipping the play systems amounted to $1,250 and was paid by Didgeridoo. On December 31, 2022, an account sales summary was received from the consignee, reporting that 420 play systems had been sold for $160 each. Remittance was made by the consignee for the amount due, after deducting a 20% commission. Calculate the following at December 31, 2022. Required The inventory value of the units unsold in the hands of the consignee The profit for the consignor for the units sold. The amount of cash that will be remitted by the consignee.
On August 15, 2022, Didgeridoo consigned 500 electronic play systems, costing $100 each, to Toys R U Company. The cost of shipping the play systems amounted to $1,250 and was paid by Didgeridoo. On December 31, 2022, an account sales summary was received from the consignee, reporting that 420 play systems had been sold for $160 each. Remittance was made by the consignee for the amount due, after deducting a 20% commission. Calculate the following at December 31, 2022. Required The inventory value of the units unsold in the hands of the consignee The profit for the consignor for the units sold. The amount of cash that will be remitted by the consignee.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On August 15, 2022, Didgeridoo consigned 500 electronic play systems, costing $100 each, to Toys R U Company. The cost of shipping the play systems amounted to $1,250 and was paid by Didgeridoo. On December 31, 2022, an account sales summary was received from the consignee, reporting that 420 play systems had been sold for $160 each. Remittance was made by the consignee for the amount due, after deducting a 20% commission. Calculate the following at December 31, 2022.
Required
- The inventory value of the units unsold in the hands of the consignee
- The profit for the consignor for the units sold.
- The amount of cash that will be remitted by the consignee.
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