During 2020, Sandhill Furniture Company purchases a carload of wicker chairs. The manufacturer sells the...
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During 2020, Sandhill Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Sandhill for a lump sum of $119,700 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 SellingPrice Each
Lounge chairs
720
$90
Armchairs
540
80
Straight chairs
1,260
50
During 2020, Sandhill sells 400 lounge chairs, 200 armchairs, and 240 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
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