Exercise 18A-19 (Part Level Submission) On May 3, 2014, Eisler Company consigned
ID: 2446567 • Letter: E
Question
Exercise 18A-19 (Part Level Submission)
On May 3, 2014, Eisler Company consigned 104 freezers, costing $670 each, to Remmers Company. The cost of shipping the freezers amounted to $870 and was paid by Eisler Company. On December 30, 2014, a report was received from the consignee, indicating that 52 freezers had been sold for $940 each. Remittance was made by the consignee for the amount due after deducting a commission of 6%, advertising of $260, and total installation costs of $330 on the freezers sold.
Compute the profit for the consignor for the units sold.
Explanation / Answer
Statement of the Profit for the Consignment Particulars Amount A. Sales of freezers (52 Units @ $940 each) 48880 Less: Expenses Cost of freezers (52 Units @ 670 each) 34840 Cost of Shipping ( $870 / 104 X 52 Units) 435 Comm. Paid (6% of $48880) 2933 Advertising 260 Total Installation Cost 330 B. Total expenses 38798 Profit (A-B) 10082
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