In: Accounting
During 2020, Skysong Furniture Company purchases a carload of
wicker chairs. The manufacturer sells the chairs to Skysong for a
lump sum of $77,805 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 |
No. of Chairs |
Estimated Selling |
|||
---|---|---|---|---|---|
Lounge chairs |
520 | $90 | |||
Armchairs |
390 | 80 | |||
Straight chairs |
910 | 50 |
During 2020, Skysong sells 260 lounge chairs, 130 armchairs, and
156 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 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 |
Lumpsum consideration paid = $77,805 | ||||||||||
Allocation of Consideration | ||||||||||
Type | Units | Selling price | Est. Sales | % of Total | Consideration | Allocated Consideration | ||||
Lounge chairs | 520 | 90 | 46800 | 37.89% | 77805 | 29484 | ||||
Armchairs | 390 | 80 | 31200 | 25.26% | 77805 | 19656 | ||||
Straight chairs | 910 | 50 | 45500 | 36.84% | 77805 | 28665 | ||||
Total | 123500 | 100.00% | 77805 | 77805 | ||||||
Cost per unit | ||||||||||
Type | Allocated Consideration | Units | Cost per unit | |||||||
Lounge chairs | 29484 | 520 | 56.7 | |||||||
Armchairs | 19656 | 390 | 50.4 | |||||||
Straight chairs | 28665 | 910 | 31.5 | |||||||
Total | 77805 | |||||||||
Ending inventory units | ||||||||||
Type | Total Units | Sales units | Ending units | |||||||
Lounge chairs | 520 | 260 | 260 | |||||||
Armchairs | 390 | 130 | 260 | |||||||
Straight chairs | 910 | 156 | 754 | |||||||
Total | ||||||||||
Gross Profit per unit | ||||||||||
Type | Selling price | Cost per unit | Gross Profit | |||||||
Lounge chairs | 90 | 56.7 | 33.3 | |||||||
Armchairs | 80 | 50.4 | 29.6 | |||||||
Straight chairs | 50 | 31.5 | 18.5 | |||||||
Gross Profit realized: | ||||||||||
Type | Sales units | Gross Profit per unit | Total Gross Profit | |||||||
Lounge chairs | 260 | 33.3 | 8658 | |||||||
Armchairs | 130 | 29.6 | 3848 | |||||||
Straight chairs | 156 | 18.5 | 2886 | |||||||
Total Gross Profit realized | 15392 | |||||||||
Ending inventory cost: | ||||||||||
Type | Ending units | Cost per unit | Ending Inventory cost | |||||||
Lounge chairs | 260 | 56.7 | 14742 | |||||||
Armchairs | 260 | 50.4 | 13104 | |||||||
Straight chairs | 754 | 31.5 | 23751 | |||||||
Total ending inventory | 51597 | |||||||||
Final Answer: |
<
Related SolutionsDuring 2020, Bonita Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs...During 2020, Bonita Furniture Company purchases a carload of
wicker chairs. The manufacturer sells the chairs to Bonita for a
lump sum of $77,805 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
No. of Chairs
Estimated Selling
Price Each
Lounge chairs
520
$90
Armchairs
390
80
Straight chairs
910
50
During...
During 2020, Cheyenne Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs...During 2020, Cheyenne Furniture Company purchases a carload of
wicker chairs. The manufacturer sells the chairs to Cheyenne for a
lump sum of $83,790 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
No. of Chairs
Estimated Selling
Price Each
Lounge chairs
560
$90
Armchairs
420
80
Straight chairs
980
50
During...
During 2020, Tamarisk Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs...During 2020, Tamarisk Furniture Company purchases a carload of
wicker chairs. The manufacturer sells the chairs to Tamarisk for a
lump sum of $149,625 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
No. of Chairs
Estimated Selling
Price Each
Lounge chairs
1,000
$90
Armchairs
750
80
Straight chairs
1,750
50
During...
During 2020, Vaughn Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs...During 2020, Vaughn Furniture Company purchases a carload of
wicker chairs. The manufacturer sells the chairs to Vaughn for a
lump sum of $161,595 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
Number of Chairs
Estimated selling Price
lounge chair
1,080
$90
armchair
810
80
straight chair
1,890
50
During 2020,...
During 2020, Pearl Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs...During 2020, Pearl Furniture Company purchases a carload of
wicker chairs. The manufacturer sells the chairs to Pearl for a
lump sum of $29,925 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
No. of Chairs
Estimated Selling
Price Each
Lounge chairs
200
$90
Armchairs
150
80
Straight chairs
350
50
During...
During 2020, Pretenders Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs...During 2020, Pretenders Furniture Company purchases a carload of
wicker chairs. The manufacturer sells the chairs to Pretenders for
a lump sum of $59,850 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 No. of
Chairs Estimated Selling Price Each Lounge chairs 400 $90 Armchairs
300 80 Straight chairs 700 50 During...
During 2020, Pharoah Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs...During 2020, Pharoah Furniture Company purchases a carload of
wicker chairs. The manufacturer sells the chairs to Pharoah for a
lump sum of $47,880 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
No. of Chairs
Estimated Selling
Price Each
Lounge chairs
320
$90
Armchairs
240
80
Straight chairs
560
50
During...
During 2020, Sandhill Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs...During 2020, Sandhill Furniture Company purchases a carload of
wicker chairs. The manufacturer sells the chairs to Sandhill for a
lump sum of $119,700 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
No. of Chairs
Estimated Selling
Price Each
Lounge chairs
720
$90
Armchairs
540
80
Straight chairs
1,260
50
During...
During 2017, Cheyenne Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs...During 2017, Cheyenne Furniture Company purchases a carload of
wicker chairs. The manufacturer sells the chairs to Cheyenne for a
lump sum of $54,400 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
No. of Chairs
Estimated Selling
Price Each
Lounge chairs 300 $90
Armchairs 300 80
Straight chairs 800 50
During...
During 2017, Flint Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs...During 2017, Flint Furniture Company purchases a carload of
wicker chairs. The manufacturer sells the chairs to Flint for a
lump sum of $54,900 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
No. of Chairs
Estimated Selling
Price Each
Lounge chairs 300 $90
Armchairs 300 80
Straight chairs 800 50
During...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
ADVERTISEMENT
|