During 2014, Pretenders Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to
Question:
During 2014, 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.
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During 2014, Pretenders sells 200 lounge chairs, 100 armchairs, and 120 straight chairs.
Instructions
What is the amount of gross profit realized during 2014? What is the amount of inventory of unsold straight chairs on December 31,2014?
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Lounge chairs Armchairs Straight chairs Lounge chairs Armchairs Straight chairs No of 400 300 700 Nu...View the full answer
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Sourabh Agarwal
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I am a Chartered Accountant(equivalent to CPA) and have secured All India Rank 31 and 30 in CA Final and CA Inter respectively. I have completed my commerce graduation from St. Xavier's College(among the top commerce colleges in India) with first division marks.
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I have taught above 300 students as part of CA Foundation and CA Inter curriculum(subjects include Financial Management, Cost Accounting, Financial Accounting and Economics).I have also taught high school students subjects like mathematics, economics and financial reporting for about 2 years while pursuing my own professional certification with high sucess rate.
My focus is on improving conceptual clarity of students by using case studies and live examples and encouraging them to ask questions. I have an approachable and friendly attitude towards my student which helps them to ask questions and have a candid discussion about the subject which ultimately helps them to do good in examinations and life in general.
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Related Book For 
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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