Question: E9.8B (LO 2) (Relative Sales Value Method) During 2020, Galarraga Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Galarraga

E9.8B (LO 2) (Relative Sales Value Method) During 2020, Galarraga Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Galarraga for a lump sum of $5,985, 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. Type No. of Chair Estimated Selling Price Each Lounge chairs Armchairs 60 40 Straight chairs 140 During 2020, Galarraga sells 40 lounge chairs, 20 armchairs, and 24 straight chairs. $45 Instructions What is the amount of gross profit realized during 2020? What is the amount of inventory of unsold straight chairs on December 31, 2020

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