Problem
On May 3rd, 2014, Eisler company consigned 80 freezers, costing $500 each, to remmers company. The cost of shipping the freezers amounted to $840 and was paid by Eisler company. On December 30th, 2014, a report was received from the consignee that 40 freezers have been sold for $750 each. Remittance was made by the consignees for the amount due, after deducting a commission of 6%, advertising of $200, and total installation cost of $320 on the 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.