- On May 1 2020 Alan Mechanical Inc Consigned 40 Generators Costing 5 000 Each To Fenelon Farm Products Inc The Total 1 (36.81 KiB) Viewed 27 times
On May 1, 2020 Alan Mechanical Inc. consigned 40 generators costing $5,000 each to Fenelon Farm Products Inc. The total
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On May 1, 2020 Alan Mechanical Inc. consigned 40 generators costing $5,000 each to Fenelon Farm Products Inc. The total
On May 1, 2020 Alan Mechanical Inc. consigned 40 generators costing $5,000 each to Fenelon Farm Products Inc. The total cost of shipping the generators was $2,000 and was paid by Alan Mechanical. On December 31, 2020, an account sales report was received from the consignee, reporting that 20 generators had been sold for $8,000 each. A remittance was made by the consignee for the amount due, after deducting a commission of 5%, advertising costs of $1,500, and total inspection costs of $1,000 on the generators sold. Assume that Alan Mechanical recognizes revenue under the earnings approach. Required: a. Calculate the inventory value of the unsold units that is still in the hands of the Fenelon Farm Products? (3 marks) b. How much profit did Alan Mechanical make on the units sold by Fenelon Farm Products? (5 marks) c. How much cash will be Alan Mechanical be receiving from Fenelon Farm Products for the sale of the units ? (4 marks)
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