What is the inventory value of the units unsold in the hands of the consignee? A. 150,000 C. 154,500 B. 153,000 D. 157,500 What is the profit of the consignor for the units sold? A. 24,000 C. 27,000 B. 26,000 D. 70,000
On October 1, CLARK Co shipped 25 cameras to KENT Inc on consignment. The cameras are to be sold at list price of P20,000 each. The cost of each camera to the consignor is P10,000. The cost of shipment paid by the consignor was P7,500. The consignor agreed to absorb the consignee’s expenditure for freight and also to allow the consignee P1,000 for delivery and installation for each set. Commission is to be 25% of the sales price. On October 31, KENT submitted the following summary of consignment sales:
| Sets received | 25 | |
| Sets sold | 8 | |
| Sets returned to consignor (defective) | 2 | 10 |
| Sets on hand | 15 |
| October 2-30 sales, 8 cameras@20,000 | 160,0000 | |
| Charges: | ||
| Freight in | 5,000 | |
| Deliveries and installation expenses | 8,000 | |
| Commissions | 40,000 | 53,000 |
| Total | 107,000 | |
| Remittance | 25,000 | |
| Balance owed (collections from customers not yet made ) | 82,000 |
What is the inventory value of the units unsold in the hands of the consignee?
A. 150,000 C. 154,500
B. 153,000 D. 157,500
What is the profit of the consignor for the units sold? A. 24,000 C. 27,000
B. 26,000 D. 70,000
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