During 2022, Crawford Furniture purchases a carload of wicker chairs. The manufacturer sells the chairs to Crawford for a lump sum of £60,000 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.

During 2022, Crawford sells 200 lounge chairs, 100 armchairs, and 120 straight chairs. 

Instructions

What is the amount of gross profit realized during 2022? What is the amount of inventory of unsold straight chairs on December 31, 2022?

Transcribed Image Text:

Туре No. of Chairs Estimated Selling Price Each Lounge chairs 400 £90 Armchairs 300 80 Straight chairs 800 50