Antonio Company delivered 150 portable gas stoves to Devon Company on consignment. These stoves cost $2,700...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Antonio Company delivered 150 portable gas stoves to Devon Company on consignment. These stoves cost $2,700 each and could be sold for $4,500. The consignee is to be allowed a commission of 15% of the selling price. The agreement for the consignment contract stated that Antonio Company would draw a sight draft on the consignee for 60% of the cost of the stoves and the advance shall be recovered periodically by monthly deductions (in proportion to units sold) from the remittances which accompany the account sales. All expenses of the consignee are to be deducted monthly as incurred. The consignee rendered an Account Sales at the end of the first month showing among others, the following information: Advertising $6,750; Delivery Expense $3,375 and Commission $10,125. What amount is remitted by Divon to Antonio for the first month? Antonio Company delivered 150 portable gas stoves to Devon Company on consignment. These stoves cost $2,700 each and could be sold for $4,500. The consignee is to be allowed a commission of 15% of the selling price. The agreement for the consignment contract stated that Antonio Company would draw a sight draft on the consignee for 60% of the cost of the stoves and the advance shall be recovered periodically by monthly deductions (in proportion to units sold) from the remittances which accompany the account sales. All expenses of the consignee are to be deducted monthly as incurred. The consignee rendered an Account Sales at the end of the first month showing among others, the following information: Advertising $6,750; Delivery Expense $3,375 and Commission $10,125. What amount is remitted by Divon to Antonio for the first month?
Expert Answer:
Answer rating: 100% (QA)
The cost of 150 portable gas stoves is 150 x 2700 405000 The consignees commissio... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Sales of a new product line for Petrus S.A. as of December 2013 are forecast at SFr. 2,400,000 per year, from which a sales commission of 15% would be paid to sales agents. Actual sales are to be...
-
In order to assist Ingiphile in the preparation of the 2021 financial statements, you are required to read the case study provided and answer the questions. Tsangoni CC is a company which...
-
Young tableaux. Suppose you have an \(n\)-by- \(n\) array of integers a [] [] such that, for all \(i\) and \(j, a[i][j] A two-dimensional array with this property is known as a Young tableaux. Write...
-
What are some important behavioral factors that must be considered when responsibilities are assigned to managers?
-
How do financial markets that run freely and efficiently affect the standard of living in a country?
-
How does the nearest neighbor algorithm work?
-
Xerxes Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted to use 36 skeins of wool at a cost of $2 per skein and 0.8 gallons of dye at a cost of...
-
The inventory for Target over last three years was 403 in 2022, (3249) in 2021, and (1661) in 2020 (United States Securities and Exchange Commission, 2023). Inventory uses LIFO method, states...
-
5 5 7 B 9 Problem Ithacor Training Inc. started as a single facility for job retraining in Ithaca, New York. The company recently expanded to a new, much larger, second facility in Cortland. The...
-
A block of mass m 1 = 5 kg is placed on top of a block with mass m 2 = 12.3 kg. A horizontal force, F = 68.6 N is applied to m 2 , causing it to slide with constant velocity. The block m 1 is tied to...
-
How does a tax imposed on a good with a high price elasticity of demand affect the market equilibrium? Who bears most of the burden of the tax in this instance?
-
Prove that the more elastic demand and supply conditions are in a country that is large in world markets, the greater the ability of that country to impose an optimal tariff.
-
Consider the delivery of mail. In general, what is the shape of the average total cost curve? How might the shape differ between isolated rural areas and densely populated urban areas? How might the...
-
Explain why neighboring countries tend to trade extensively with each other.
-
The United States automakers have announced programs to build and market electric cars. Should the United States impose temporary protection on this product to guarantee U.S. commercial success? Why...
-
Write a function to test if a sentence is a symmetric sentence. (function will return true or false) Symmetric sentence examples: 1. Live not on evil (-> livenotonevil symmetric sentence) 2. Step on...
-
Ball bearings are widely used in industrial applications. You work for an industrial food machinery manufacturer and your role is to design the driveshaft assembly on a new type of equipment that...
-
Comparative financial statement data for Holly Company are given below: For 2008, the company reported net income as follows: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500...
-
Refer to the data for Durall Company in the preceding case. Assume that the company uses the FIFO method. Required: 1. Prepare a report for the Forming Department for October showing how much cost...
-
What types of costs should not be assigned to products in an activity-based costing system?
-
Acrylic latex paint can be described as a Bingham plastic with a yield stress of $200 \mathrm{dyn} / \mathrm{cm}^{2}$, a limiting viscosity of $50 \mathrm{cP}$, and a density of $0.95 \mathrm{~g} /...
-
A slider bearing can be described as one plate moving with a velocity $V$ parallel to a stationary plate, with a viscous lubricant in between the plates. The force applied to the moving plate is $F$,...
-
Consider a fluid flowing in a conical section, as illustrated in Figure P5.75. The mass flow rate is the same going in (through point 1) as it is coming out (point 2), but the velocity changes...
Study smarter with the SolutionInn App