During 2020, Bonita Furniture Company purchases a carload of wicker chairs. The manufacturer sells the...
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During 2020, Bonita Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Bonita for a lump sum of $65,835 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 440 $90 Armchairs 330 80 Straight chairs 770 50 During 2020, Bonita sells 220 lounge chairs, 110 armchairs, and 132 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?
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