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1- During 2020, Sunland Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Sunland for a lump sum of $101,745

1- During 2020, Sunland Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Sunland for a lump sum of $101,745 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below.

Type

No. of Chairs

Estimated Selling Price Each

Lounge chairs

680 $90

Armchairs

510 80

Straight chairs

1,190 50

During 2020, Sunland sells 340 lounge chairs, 170 armchairs, and 204 straight chairs. What is the amount of gross profit realized during 2020? What is the amount of inventory of unsold straight chairs on December 31, 2020? (Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to 0 decimal places, e.g. 5,845.)

Gross profit realized during 2020

$enter a dollar amount

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Amount of inventory of unsold straight chairs

$enter a dollar amount

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2- Crane Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below.

Item D

Item E

Item F

Item G

Item H

Item I

Estimated selling price

$122 $112 $97 $92 $112 $92

Cost

77 82 82 82 51 37

Cost to complete

31 31 26 36 31 31

Selling costs

10 18 10 20 10 20

Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2020, for each of the inventory items above.

Item D

$enter a dollar amount

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Item E

$enter a dollar amount

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Item F

$enter a dollar amount

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Item G

$enter a dollar amount

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Item H

$enter a dollar amount

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Item I

$enter a dollar amount

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3-

Kingbird Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.
Inventory, May 1 $ 175,600
Purchases (gross) 617,400
Freight-in 31,700
Sales revenue 973,200
Sales returns 68,100
Purchase discounts 12,900
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Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales.
The estimated inventory at May 31 $enter the dollar amount of the estimated inventory at May 31

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Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost. (Round percentage of sales to 2 decimal places, e.g. 78.74% and final answer to 0 decimal places, e.g. 6,225.)

The estimated inventory at May 31 $enter the dollar amount of the estimated inventory at May 31

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