A Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to the company for a lump sum of $59,850 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	400	$90
Armchairs	300	80
Straight chairs	700	50

During 2014, the Company sells 200 lounge chairs, 100 armchairs, and 120 straight chairs.

Instructions

What is the amount of gross profit realized during 2014? What is the amount of inventory of unsold straight chairs on December 31, 2014?