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)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 2RE: Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of...
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![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
Туpe
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, eg. 78.25 and final answer to 0 decimal places, eg. 5,845.)
Gross profit realized during 2020
%24
Amount of inventory of unsold straight chairs
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0bb1ff74-656a-48d4-946d-440c26f1021c%2F947bf886-6ca2-489a-b6e6-0097e5b463bf%2Fqpznvv6_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
Туpe
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, eg. 78.25 and final answer to 0 decimal places, eg. 5,845.)
Gross profit realized during 2020
%24
Amount of inventory of unsold straight chairs
%24
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