What is the value of the unsold inventory in the hands of the consignee?

To determine the value of the unsold inventory in the hands of the consignee, it's essential to understand the nature of consignment. In a consignment arrangement, a consignor sends goods to a consignee, who agrees to sell those goods on behalf of the consignor. The key point here is that the inventory remains the property of the consignor until it is sold.

The value of the unsold inventory relates directly to the cost of the goods that have been shipped to the consignee and are still unsold at the cutoff date for accounting purposes. Therefore, it would represent the carrying cost that the consignor must account for in their financial statements.

If the inventory of 20,420 accurately reflects the total cost of the unsold goods held by the consignee, then this would be the correct answer. The valuation considers various factors such as the original cost of goods sent, potential markdowns, and any other relevant costs associated with those items still held in inventory by the consignee.

Thus, the correct value of the unsold inventory, represented by the figure of 20,420, indicates a thorough understanding of these concepts and reinforces the fundamental principles of accounting for inventory in a consignment context.