Exercise 9-10

During 2017, Ivanhoe Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Ivanhoe for a lump sum of $57,400 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		300		$90
Armchairs		300		80
Straight chairs		600		50

During 2017, Ivanhoe sells 200 lounge chairs, 100 armchairs, and 130 straight chairs. What is the amount of gross profit realized during 2017? What is the amount of inventory of unsold straight chairs on December 31, 2017? (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 2017		$
Amount of inventory of unsold straight chairs		$