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Question - During 2017, Cheyenne Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Cheyenne for a lump sum of $55,300 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.
No. of Chairs
Estimated Selling price Each
During 2017, Cheyenne sells 150 lounge chairs, 120 armchairs, and 120 straight chairs.
What is the amount of gross profit realized during 2017?
What is the amount of inventory of unsold straight chairs on December 31, 2017?
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