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1- During 2020, Sunland Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Sunland for a lump sum of $101,745 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		680		$90
Armchairs		510		80
Straight chairs		1,190		50

During 2020, Sunland sells 340 lounge chairs, 170 armchairs, and 204 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

2- Crane Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below.

		Item D			Item E			Item F			Item G			Item H			Item I
Estimated selling price		$122			$112			$97			$92			$112			$92
Cost		77			82			82			82			51			37
Cost to complete		31			31			26			36			31			31
Selling costs		10			18			10			20			10			20

Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2020, for each of the inventory items above.

Item D			$enter a dollar amount
Item E			$enter a dollar amount
Item F			$enter a dollar amount
Item G			$enter a dollar amount
Item H			$enter a dollar amount
Item I			$enter a dollar amount

3-

Kingbird Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $ 175,600 Purchases (gross) 617,400 Freight-in 31,700 Sales revenue 973,200 Sales returns 68,100 Purchase discounts 12,900

Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales. The estimated inventory at May 31 $enter the dollar amount of the estimated inventory at May 31

Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost. (Round percentage of sales to 2 decimal places, e.g. 78.74% and final answer to 0 decimal places, e.g. 6,225.)

The estimated inventory at May 31

$enter the dollar amount of the estimated inventory at May 31

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