During 2020, Skysong Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs...

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Accounting

During 2020, Skysong Furniture Company purchases a carload ofwicker chairs. The manufacturer sells the chairs to Skysong for alump sum of $77,805 because it is discontinuing manufacturingoperations and wishes to dispose of its entire stock. Three typesof chairs are included in the carload. The three types and theestimated selling price for each are listed below.
Type
No. of Chairs
Estimated Selling
Price Each
Lounge chairs
520 $90
Armchairs
390 80
Straight chairs
910 50

During 2020, Skysong sells 260 lounge chairs, 130 armchairs, and156 straight chairs.

What is the amount of gross profit realized during 2020? What isthe 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

Type	No. of Chairs	Estimated Selling Price Each
Lounge chairs	520	$90
Armchairs	390	80
Straight chairs	910	50

Gross profit realized during 2020		$enter a dollar amount
Amount of inventory of unsold straight chairs		$enter a dollar amount

Answer & Explanation Solved by verified expert

4.4 Ratings (622 Votes)

Lumpsum consideration paid 77805 Allocation of Consideration Type Units Selling price Est Sales of Total Consideration Allocated Consideration Lounge chairs 520 90 46800 3789 77805 29484 Armchairs 390 80 31200 2526 77805 19656 See Answer

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