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
