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Question - Relative Sales Value Method During 2011, Crawford Furniture Company purchases
Relative Sales Value Method During 2011, Crawford Furniture Company 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 2011, Crawford sells 200 lounge chairs, 100 armchairs, and 120 straight chairs.
What is the amount of gross profit realized during 2011?
What is the amount of inventory of unsold straight chairs on December 31, 2011?
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