Question
During 2020, Pina Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Pina for a lump sum of $ 137,655
During 2020, Pina Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Pina for a lump sum of $ 137,655 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 | 920 | $ 90 | |||
| Armchairs | 690 | 80 | |||
| Straight chairs | 1,610 | 50 | |||
During 2020, Pina sells 460 lounge chairs, 230 armchairs, and 276 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?
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Accounting Ethics
Authors: Iris Stuart
1st Edition
1118542401, 9781118542408
