Question
The lump sum of $167,580 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included
The lump sum of $167,580 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 | 1,120 | $90 | |||
| Armchairs | 840 | 80 | |||
| Straight chairs | 1,960 | 50 | |||
During 2020, Tamarisk sells 560 lounge chairs, 280 armchairs, and 336 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:
Amount of inventory of unsold straight chairs:
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ISE Financial Accounting
Authors: Robert Libby, Patricia Libby, Frank Hodge Ch
11th Edition
1265083924, 9781265083922
