1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Salsk061 [2.6K]
3 years ago
15

On May 3, 2020, Windsor Company consigned 90 freezers, costing $480 each, to Remmers Company. The cost of shipping the freezers

amounted to $850 and was paid by Windsor Company. On December 30, 2020, a report was received from the consignee, indicating that 45 freezers had been sold for $780 each. Remittance was made by the consignee for the amount due after deducting a commission of 6%, advertising of $210, and total installation costs of $330 on the freezers sold.
(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
2 answers:
seraphim [82]3 years ago
8 0

Answer:

Windsor Company and Remmers Company

a) Inventory value of unsold units in consignee's hands:

Product cost = $480 per freezer

Freight cost = $9.44 per freezer

Total cost = $489.44 per freezer

Inventory = 45 freezers (90 - 45)

Inventory value = $489.44 x 45 = $22,024.80

b) Profit for the consignor for the sold units:

Sales = $35,100 (45 x $780)

Less Product cost - $22,024.80 (45 x $489.44)

Less Sales Commission = $2,106 (6% of $35,100)

Less Advertising = $210

Less Installation = $330

Profit = $10,429.20

c) Amount of cash to be remitted by the consignee:

Sales Proceeds = $35,100

Less Sales Commission = $2,106 (6% of $35,100)

Less Advertising = $210

Less Installation = $330

Amount to be remitted = $32,454

Explanation:

In consignment relationships, the goods under consignment belong to the the consignor until they are sold to a third party.  While the consignee has physical possession, the ownership of the consigned goods belong to the consignor.

The closing inventory value must be included in the consignor's inventory and not in the consignee's.

The profit for the consignor represents the sales value less associated costs.  The advertising cost is regarded as a period costs, hence, it was not apportioned between cost of sales and inventory.

Before the consignee can remit cash for items sold, she deducts her commission, including incidental costs incurred.

aivan3 [116]3 years ago
3 0

Answer:

a. Value of Ending inventory  $ 22025

b. Profit=  $ 10429

c. Amount Remitted to the Consignor  $32454      

Explanation:

Windsor Company

Goods Sent on Consignment  90 * $ 480= $ 43,200

Shipping Charges                                              $ 850

Total                                                                    $44050

Cost of One Freezer = $ 44050/ 90= $ 489.44

Cost of 45 Freezers= $22025

The ending inventory value is calculated by multiplying the unit costs with the units at hand.

a. Value of Ending inventory at the Hands of the Consignee = Units* Cost Price = 45 * $ 489.44= $ 22025

Sales by the Consignee           45* $ 780= $ 35100

b. Profit= Sales - (Cost + Expenses) =  $ 35100- ($22025 + $2646)  

= $ 10429

Profit is calculated by subtracting all the expenses and the cost from the sales

Installation Charges                                 $330

Advertisement Costs                                $ 210

Commission (6% of 35100)=                     $2106

Total  Expenses                                      $2646  

c. Amount Remitted to the Consignor = Sales - Expenses=  ( $ 35100-  $2646 )= $32454                        

You might be interested in
Laserscope Inc. is trying to determine the best combination of short-term and long-term debt to employ in financing its assets.
snow_lady [41]

Answer:

Laserscope Inc.

Return on Equity (ROE):

= $1,466,400/$18,000,000 * 100

= 8.15%

Explanation:

a) Laserscope's Return on Equity (ROE) is a financial performance measure, calculated by dividing the net income or Earnings After Tax (EAT) by its total shareholders' equity.  It is usually expressed as a percentage.  So the above calculation is further multiplied by 100.

b) Data and Calculations:

Current assets = $16

Fixed assets = $20

Total assets = $36

Debt ratio = 50%  of $36 million = $18 million

Therefore, Stockholders' equity = 50% (1 - 50%) or $18 million

EBIT = $4.1 million

Short-term debt = $6 million

Long-term debt = $12 million

Interest on short-term debt = $420,000 (7% * $6 million)

Interest on long-term debt = $1,236,000 (10.3% * $12 million)

Total interest expense = $1,656,000

Earnings before interest and taxes = $4,100,000

Interest expense                                   1,656,000

Earnings before taxes                          2,444,000

Company tax (40%)                                (977,600)

Earnings after taxes (EAT)                 $1,466,400

7 0
3 years ago
Land and other real estate held as investments by endowments in a government's permanent fund should be reported at
VashaNatasha [74]

Complete Question:

Land and other real estate held as investments by endowments in a government’s permanent fund should be reported at

Group of answer choices

A. Historical cost.

B. Fair value less costs of disposal.

C. Fair value.

D. The lower of cost and net realizable value.

Answer:

C. Fair value.

Explanation:

Land and other real estate held as investments by endowments in a government's permanent fund should be reported at fair value of the reporting date except for the exception of life insurance contract, external investment pool, money market investment etc.

The fair value can be defined as the actual or real value of an asset, security, product or item in financial accounting.

5 0
3 years ago
How much would you have to invest today in the bank at an interest rate of 10% to have an annuity of $5600 per year for 7 years,
Shtirlitz [24]

Answer:

PV = $27,263.15

It will be needed to deposit the lump sum of $27,263.15

Explanation:

The question is asking for how much will you need to deposit in a lump sum  today to withdraw for seven years the sum of $5,600 with an interest rate of 10%

In other words it is asking us for the preset value of an annuity of $5,600 with interest of 10%

Using the present value of an annuity formula of $1 we can solve for the present value of that annuity, which is the amount needed to generate this annuity

C * \frac{1-(1+r)^{-time} }{rate}= PV\\

We post our knows value and solve it:

5,600 * \frac{1-(1+0.10)^{-7} }{0.10}= PV\\

PV = $27,263.15

8 0
3 years ago
The Operations Manager for Shadyside Savings & Loan orders cash from her home office for her very popular "BIG BUCKS" automa
notsponge [240]

Answer:

3,000 $100 bills equivalent to $300,000

Explanation:

The economic order quantity (EOQ) is the optimum quantity of a good to be purchased or required at a time in order to minimize ordering and carrying costs in inventory.

EOQ = the square root of [(2 times the annual demand in units times the incremental cost to process an order) divided by (the incremental annual cost to carry one unit in inventory)]

  • annual demand in units = 12,500 x 12 = 150,000
  • incremental costs to process an order = $300
  • incremental annual cost to carry one unit in inventory = 10% x 100 = $10

EOQ = √[(2 x 150,000 x $300) / $10] = √($90,000,000 / $10) = √9,000,000 = 3,000 bills

8 0
3 years ago
In a perfectly competitive industry, the short-run supply curve for the market is the:
DENIUS [597]

Answer:

b. marginal cost curve above the average variable cost curve.

Explanation:

A perfect competitive indsutry is a characterised by many firms selling homogenous goods and services. Firms are price takers and there are no barriers to entry or exit of firms in the industry.

The supply curve of a perfectly competitive firm in the short run is the part of the marginal cost curve that lies above the average variable cost curve.

A perfect competition maximises profit where price equals marginal cost.

I hope my answer helps you

3 0
3 years ago
Other questions:
  • Marriott International, Inc., is a leading global lodging company, with more than 6,000 properties in 122 countries. Information
    8·1 answer
  • James Frank has been put in charge of gathering marketing intelligence, disseminating it within his organization, and eventually
    9·1 answer
  • Assume that the cost of aluminum used by​ soft-drink companies increases. Indicate which of the following statements describing
    11·1 answer
  • The following data were reported by a corporation: Authorized shares 38,000 Issued shares 33,000 Treasury shares 12,500 The numb
    15·1 answer
  • Prepare journal entries to record the following transactions entered into by the Merando Company: 2016 June 1 Received a $10,000
    9·1 answer
  • Who should you' alert that you are interviewing for jobs? A.Your references B.Other possible employers C.Your classmates D.Your
    5·2 answers
  • Which of the following statements is​ false?A. In a​ make-to-order environment, the forecasts tend to be for groups of products.
    9·1 answer
  • One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 6.7% annual coupon bonds at their par value of $1,000. Today,
    14·1 answer
  • A company reported the following information for its most recent year of operation: purchases, $114,000; beginning inventory, $2
    11·1 answer
  • The Tax Cuts and Jobs Act allows owners of a sole proprietor or partnership to deduct up to _____ percent of the income earned b
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!