Crawford Furniture Company_Computation of Gross profit & Ending Inventory

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Description

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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