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baherus [9]
3 years ago
11

On May 3, 2020, Concord Company consigned 80 freezers, costing $540 each, to Remmers Company. The cost of shipping the freezers

amounted to $820 and was paid by Concord Company. On December 30, 2020, a report was received from the consignee, indicating that 40 freezers had been sold for $700 each. Remittance was made by the consignee for the amount due after deducting a commission of 6%, advertising of $180, and total installation costs of $350 on the freezers sold.
Required:
(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.
(b) Compute the profit for the consignor for the units sold.
(c) Compute the amount of cash that will be remitted by the consignee.
Business
1 answer:
NeX [460]3 years ago
7 0

Answer:

a) $22,010

b) $3,780

c) $25,790

Explanation:

a) In calculating the value of inventory still left, the total value needs to be calculated first,

= (80 freezers * $540) + $820 ( transport fees)

= 43,200 + 820

= $44,020

40 out of 80 freezers have not been sold so,

= 40/80 * 44,020

= $22,010

b) In calculating the profit, subtract the expenses from the sales

Sales = 40 * 700

= $28,000

= 28,000 - Cost of refrigerators - commission of 6% of sales - advertising - installation

= 28,000 - 22,010 - (28,000*0.06) - 180 - 350

= $3,780

c) The amount remitted by the consignor will be,

= Sales - commission - advertising - installation

= 28,000 - (28,000 * 0.06) - 180 - 350

= $25,790

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3 years ago
The depreciation method in which a plant asset's depreciation expense for a period is determined by applying a constant deprecia
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double declining balance method

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The double declining method applies a rate twice as the straight-line method.

This is applied at the carrying value of the assets (book value) every year for each year of useful life.

5 0
3 years ago
Assume that three identical units of merchandise were purchased during October, as follows: Units Cost October 5 Purchase 1 $5 1
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Answer:

Cost of merchandise sold = $ 28

Gross profit = $ 13

The ending inventory under the LIFO method = $ 18

Explanation:

Given:

October 5,

Purchased units =  1

Unit cost = $5

on October  12,

Purchased units = 1

Unit cost = $ 13

On October 28,

Purchased unit = 1

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Now, the unit sold on October 31 will be the unit purchased in the end i.e on October 28

thus,

Cost of merchandise sold = $ 28

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3 years ago
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Landrum Corporation is considering investing in specialized equipment costing​ $250,000. The equipment has a useful life of 5 ye
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Answer: ARR = Average profit/Initial outlay x 100

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               ARR = 7.60%

The correct answer is C

               

               Depreciation = Cost - Residual value/Estimated useful life

                                       = $250,000 - $20,000/5 years

                                       = $46,000 per annum

               Average profit = Total profit/No of years

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                                                                       $

              Average profit                           65,000

        Less: Depreciation                           46,000

       Average profit after depreciation   19,000

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