On August 15, 2020, Japan Ideas consigned 750 electronic play systems, costing $100 each, to YoYo Toys Company. The cost of shipping the play systems amounted to $1,500 and was paid by Japan Ideas. On December 31, 2020, an account sales summary was receiv

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business-accounting

Answer 1

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Inventory value of Unsold units:
Cost of units sent (750*100)	75000
Add: Shipping cost		1500
Total Cost of inventory	76500
Divide: Total Units sent	750
Cost per unit		102
Multiply: Units unsold (750-420)	330
Inventory value of Unsold units:	33660


Profit on Consignment:
Sales revenue of 420 units*150		63000
Less: Cost of 420 units @102		42840
Gross profit			20160
*Less: Commission (6300020%)**		12600
Net Income on Consignment		7560

Cash to be remitted by consignee:
Sales revenue collected		63000
Less: Commission deducted		12600
Cash to be remitted by consignee:	50400

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Answer 2