Mogul company ships merchandise to ski outfit in a consignment arrangement. the arrangement specifies that ski outfit will attempt to sell the merchandise, and in return, mogul will pay to ski outfit a 15% sales commission on any merchandise sold. during the year, mogul ships inventory with a cost of $85,000 to ski outfit. by the end of the year, $64,000 of the merchandise has been sold to customers for a total of $90,200. what amount of inventory will mogul report at year end?
a. $0.
b. $5,200.
c. $12,750.
d. $21,000.

correct option is D. $21,000

Explanation:

given data

sales commission = 15%

cost of inventory sent to consignee = $85,000

Cost of inventory sold by consignee = $64,000

total  = $90,200

solution

we get here inventory at the year end that is express as

inventory at the year end = Cost of inventory sent to consignee - Cost of inventory sold by consignee    1

put here value and we will get

inventory at the year end = $85,000 - $64,000

inventory at the year end = $21,000

so correct option is D. $21,000

answer; i believe that the correct answer is (product

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