Answer:
Instructions are listed below
Explanation:
Giving the following information:
The manufacturer sells the chairs to Nash for a lump sum of $161,595.
Purchase:
Lounge chairs 1,080
Armchairs 810
Straight chairs 1,890
Sell:
Lounge chairs: 540 units at $90 =48600
Armchairs: 270 units at $80= 21600
Straight chairs: 324at $50= 16200
We need to determine the cost of sold goods. First, we will ponderate the lump sum cost for each type of chair.
Total units= 3780
Lounge= 1080/3780= 0.29
Armchairs= 810/3780= 0.21
Straight= 1890/3780= 0.5
Total cost= 161,595.
Lounge= 0.29* 161595= $46,862.55= $43.39
Armchairs= 0.21*161595= $33,934.95= $41.89
Straight= 0.5* 161595= $80,797.5= $42.75
Sales= $86400
COGS= (43.39*540) + (41.89*270) + (42.75*324)= 48,591.9
Gross profit= 37,808.1
Inventory= 161595 - 48491.9= %113,103.1
