During 2022, Crawford Furniture purchases a carload of wicker chairs. The manufacturer sells the chairs to...

 

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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. No. of Chairs Estimated Selling Price Each Type Lounge chairs Armchairs Straight chairs 400 300 800 £90 80 50 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? E9.14 (LO 3) (Gross Profit Method) Astaire ASA uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 € 160,000 Purchases (gross) 640,000 Freight-in 30,000 Sales 1,000,000 Sales returns 70,000 Purchase discounts 12,000 Instructions a. Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. b. Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost. 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. No. of Chairs Estimated Selling Price Each Type Lounge chairs Armchairs Straight chairs 400 300 800 £90 80 50 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? E9.14 (LO 3) (Gross Profit Method) Astaire ASA uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 € 160,000 Purchases (gross) 640,000 Freight-in 30,000 Sales 1,000,000 Sales returns 70,000 Purchase discounts 12,000 Instructions a. Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. b. Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost.