On May 3, 2020, Flint Company consigned 80 freezers, costing $450 each, to Remmers Company. The cost of shipping the freezers amounted to $870 and was paid by Flint Company. On December 30, 2020, a report was received from the consignee, indicating that 40 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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On May 3, 2020, Flint Company consigned 80 freezers, costing $450 each, to Remmers Company. The cost of shipping the freezers amounted to $870 and was paid by Flint Company. On December 30, 2020, a report was received from the consignee, indicating that 40 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 
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