Posted: July 25th, 2021

Crawford furniture company_computation of gross profit & ending

During 2013, Crawford Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Crawford for a lump sum of $65,000 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
 Type                          No. of chairs                         Price Each
Lounge chairs            400                                       $126
Armchairs                    300                                         112
Straight chairs          1,000                                          70

During 2013, Crawford sells 120 lounge chairs, 120 armchairs, and 170 straight chairs.

What is the amount of gross profit realized during 2013?

 

What is the amount of inventory of unsold straight chairs on December 31, 2013? (Round ratios for computational purposes to 1 decimal place, e.g 78.7%, round cost per chair to 2 decimal places, e.g. $78.25 and final answers to 0 decimal places, e.g. $5,845.)

Gross profit realized during 2013                                      $
Amount of inventory of unsold straight chairs               $ 

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