During 2020, Sage Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Sage for a lump sum of $83,790 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 560 $90 Armchairs 420 80 Straight chairs 980 50 During 2020, Sage sells 280 lounge chairs, 140 armchairs, and 168 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.)
During 2020, Sage Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Sage for a lump sum of $83,790 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 560 $90 Armchairs 420 80 Straight chairs 980 50 During 2020, Sage sells 280 lounge chairs, 140 armchairs, and 168 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
During 2020, Sage Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Sage for a lump sum of $83,790 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
|
560 | $90 | |||
|
Armchairs
|
420 | 80 | |||
|
Straight chairs
|
980 | 50 |
During 2020, Sage sells 280 lounge chairs, 140 armchairs, and 168 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.)
Transcribed Image Text:Current Attempt in Progress
During 2020, Sage Furniture Company purchases a carload of wicker chairs. The manufacturer sells the
chairs to Sage for a lump sum of $83,790 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
Туре
No. of Chairs
Price Each
Lounge chairs
560
$90
Armchairs
420
80
Straight chairs
980
50
During 2020, Sage sells 280 lounge chairs, 140 armchairs, and 168 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 fınal
answer to 0 decimal places, e.g. 5,845.)
Gross profit realized during 2020
$
Amount of inventory of unsold straight chairs
2$
%24
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