**2020 Furniture Disposal Scenario**In 2020, Marin Furniture Company acquires a shipment of wicker chairs. The manufacturer offers these to Marin at a total of $167,580, following its decision to cease manufacturing operations and clear all stock. Below are the three chair types along with their estimated selling prices:| **Type** | **No. of Chairs** | **Estimated Selling Price Each** ||---------------------|-------------------|---------------------------------|| Lounge chairs | 1,120 | $90 || Armchairs | 840 | $80 || Straight chairs | 1,960 | $50 |During the year, Marin sells:- 560 lounge chairs- 280 armchairs- 336 straight chairs**Required Calculations:**1. Calculate the gross profit for 2020.2. Determine the value of unsold straight chairs inventory as of December 31, 2020.**Instructions:**- Do not round the relative sales price.- Round cost per chair to two decimal places, e.g., 78.25.- Present the final answer as a whole number, without decimals, e.g., 5,845.**Results:**- **Gross profit realized during 2020**: $ ___________- **Amount of inventory of unsold straight chairs**: $ ___________

During 2020, Marin Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Marin for a 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. Estimated Selling Price Each Турe No. of Chairs Lounge chairs 1,120 $90 Armchairs 840 80 Straight chairs 1,960 50 During 2020, Marin 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? (Do not round relative sales price. Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to O decimal places, eg. 5,845)

During 2020, Marin Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Marin for a 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. Estimated Selling Price Each Турe No. of Chairs Lounge chairs 1,120 $90 Armchairs 840 80 Straight chairs 1,960 50 During 2020, Marin 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? (Do not round relative sales price. Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to O decimal places, eg. 5,845)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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E9.10 (LO 3) (Relative Sales Value Method) During 2020, Pretenders Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Pretenders for a lump sum of $59,850 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. Туре No. of Chairs Estimated Selling Price Each Lounge chairs Armchairs 400 $90 300 80 Straight chairs 700 50 During 2020, Pretenders sells 200 lounge chairs, 100 armchairs, and 120 straight chairs. Instructions 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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