Question 1 During 2017, Culver Furniture Company purchases a carload of wicker c
ID: 2562244 • Letter: Q
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Question 1 During 2017, Culver Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Culver for a lump sum of $60,800 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 Price Each $90 80 50 Selling No. of Chairs 300 200 700 Type Lounge chairs Armchairs Straight chairs During 2017, Culver sells 100 lounge chairs, 100 armchairs, and 100 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? (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 2017 Amount of inventory of unsold straight chairsExplanation / Answer
(a)
(b)
(c)
(d) = (b)*(c)
(e) = (Total Sales Price/78000)*100
(f) = 60800*(e)
(g) = (f)/(d)
Number of Chairs
Estimated Selling Price
Total Sales Price
Percentage
Cost allocated to Chairs
Cost per Chair
Lounge Chairs
300
90
27000
34.615%
21046.15385
70.15
Arm Chairs
200
80
16000
20.513%
12471.79487
62.36
Straight Chairs
700
50
35000
44.872%
27282.05128
38.97
78000
Answer to Part 1
(a)
(b)
(c)
(d) = (b)*(c)
(e)
(f) = (b)*(e)
(g) = (d) - (f)
Number of Units Sold
Selling price per Child
Total Sales
Cost per Chair
Total Cost
Gross Profit
Lounge Chairs
100
90
9000
70.15
7015
1985
Arm Chairs
100
80
8000
62.36
6236
1764
Straight Chairs
100
50
5000
38.97
3897
1103
Total Gross Profit
4852
Answer to Part 2
(a)
(b)
(c)
(d) = (b) - (c)
(e)
(f) = (d)*(e)
Bought
Number of Units Sold
Unsold
Cost per Chair
Total Cost
Straight Chairs
700
100
600
38.97
23382
(a)
(b)
(c)
(d) = (b)*(c)
(e) = (Total Sales Price/78000)*100
(f) = 60800*(e)
(g) = (f)/(d)
Number of Chairs
Estimated Selling Price
Total Sales Price
Percentage
Cost allocated to Chairs
Cost per Chair
Lounge Chairs
300
90
27000
34.615%
21046.15385
70.15
Arm Chairs
200
80
16000
20.513%
12471.79487
62.36
Straight Chairs
700
50
35000
44.872%
27282.05128
38.97
78000
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