ACC410 E18-21 - Consignment sales(40 X $750 $ 1 30,000 Cost...

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E18- 21 Page 975 May 30, 2010 Eisler consigned freezers 80 Freezer Cost each $ 500 Shipping Cost Paid by Eisler $ 840 Dec, 30, 2010 consigned freezers sold 40 Sales Price each $ 750 Commission 6% Advertising Cost $ 200 Total Installation costs $ 320 (a) Inventoriable costs: 80 units shipped at cost of $500 each $ 40,000 Freight 8 40 Total inventoriable cost $ 40,840 40 units unsold (40/80 = 50%) $ 20,420 (b) Computation of consignment profit:
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Unformatted text preview: Consignment sales (40 X $750) $ 1 30,000 Cost of units sold (40/80 X $40,840) (20,42 0) Commission charged by consignee (6% X $30,000) (1,80 0) Advertising cost (20 0) Installation costs (32 0) Profit on consignment sales $ 7,260 (c) Remittance of consignee: Consignment sales $ 30,000 Less: Commissions (1,80 0) Advertising (20 0) Installation (32 0) Remittance from consignee $ 27,680 2...
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ACC410 E18-21 - Consignment sales(40 X $750 $ 1 30,000 Cost...

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