During 2020, Eddie Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to the company for a lump sum of P59,850 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 Est. Selling Price Each

Lounge Chairs 400 P90

Armchairs 300 80

Straight Chairs 700 50

During 2020, Eddie sells 200 lounge chairs, 100 armchairs, and 120 straight chars.

Requirement:

1. What is the amount of gross profit realized in 2020?

2. What is the amount of inventory of unsold straight chairs on December 31, 2020?