Question

Exercise 9-10 During 2020, Carla Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Carla for a lump sum of $89,775 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 600 $90 Armchairs 450 80 Straight chairs 1,050 50 During 2020, Carla sells 300 lounge chairs, 150 armchairs, and 180 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? (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 2020 $enter a dollar amount Amount of inventory of unsold straight chairs $enter a dollar amount

Answer 1