Question

Exercise 9-10 x Your answer is incorrect. Try again. During 2020, Cheyenne Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Cheyenne 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. Type Lounge chairs Armchairs Straight chairs No. of Chairs 280 210 490 Estimated Selling Price Each $90 80 During 2020, Cheyenne 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 2772 Amount of inventory of unsold straight chairs 23328

Answer 1

cost per Total Relative Sales price chair Total sales cost Answers calculation of cost per unit- sales pnce chain No.of chairs perlinit (5) Lounge 280 $90 cost-allocated to chain f=dxe g = € ies (a) (Cz axb) d= 56500 $ 20,412- $ 729 $ 25,200 0.37894737 $53865 64.8 13608 16800 80 0.25213158 $53,865 210 Am 19845 4o.5 24500 $53,865 490 0.36842105 straight $ 53,865 #66,500 calculation of Gross profit ca cost of chain sold Grossprofit (b-a) sales cost per chat - No. of chain sold chair $ 3079 $ 13,122 $ 16200 ISOX $90 $72.9 lounge 180 $1368 64.8 5832 $+200 (90X $80) arm $(026 straight 108 40.5 4374 $ 5400 (OS X $50) $ 28,500 & 5472 $23,328 .. Gross profit = $54.72 Amount of inventory of unsold your strought chain = (490- 108) х - $ 15,471