Question

Current Attempt in Progress During 2020, Kingbird Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Kingbird for a lump sum of $53,865 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 Type No. of Chairs Lounge chairs 280 $90 Armchairs 210 Straight chairs 490 During 2020, Kingbird sells 180 lounge chairs, 90 armchairs, and 108 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 O decimal places, e.g. 5,845.) Gross profit realized during 2020 Amount of inventory of unsold straight chairs

Answer 1

* cost of individual chair is not giver So, let's consider average cost / unit - Average cost = =) Total cost - Total Number of chairs $53865 980 chairs -1854.96] Gross profit & Sales- cost of goods Sales = (180 X 90) +(20x80)+(108x50) - $28800 cost of goods (180+90 +108) x 54.96 sold $20774.88 Gross profit = $28800 - 20774.88 $ 8025 Amount of inventory unsold straight choirs = ['490-108) X54.96 $ 20995