Question
During 2020, Swifty Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Swifty for a lump sum of $41,895 because
During 2020, Swifty Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Swifty for a lump sum of $41,895 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 | 280 | $90 | |||
| Armchairs | 210 | 80 | |||
| Straight chairs | 490 | 50 | |||
During 2020, Swifty sells 140 lounge chairs, 70 armchairs, and 84 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?
| Gross profit realized during 2020 | ? | |
|---|---|---|
| Amount of inventory of unsold straight chairs ? |
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Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
13th edition
978-1285868806, 1285868803, 978-1305691254, 978-1305465640, 1305465644, 978-1285866307
