ENABLING ASSESSMENT

1. The Printex Manufacturing Company delivered 10 printers to Primeprint Company on consignment.

These printers cost 3,000 each and to be sold at 5,000 each. The Printex Manufacturing Company paid
shipment cost of 2,500. Primeprint company submitted an account sales stating that it had returned one
unit and was remitting 21,900. This amount represents the total amount due to printex manufacturing
company after deducting the following from the selling price of the printers sold:

Commission 20% of selling price

Advertising 1,000
Delivery and installation 600
Cartage on consigned goods 500

● The consignment profit is

2300

● The cost of inventory on consignment is

9900

2. On January 1, 2021, Best Electrical Shop received from Marion Trading 300 pieces of bread toasters,
Best was to sell this on consignment at 50% above cost price and will receive a 15% commission. Best
paid 2,000 for cartage. Marion Trading consequently increased the selling price of the remaining units
to 330 after Best sold 200 units. On January 31, Best remitted 64,980 after deducting the commission,
850 delivery expense and 2,000 cartage. The consigned goods cost Marion 200 per unit and 1,150 was
paid in shipping the goods to Best. Consignment expenses are reimbursable.

● The consignment profit on the sold units is

12250

● The value of inventory on consignment is

8420

● The number of units sold is

260