Answered: Hans Inc. is a merchandising company…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 4CE: Kulsrud Company would like to estimate the current inventory level. Using the gross profit method...

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Hans Inc. is a merchandising company that resells equestrian saddles. The company’s inventory data is as follows:

Cost of Goods Available for Sale

Jan. 1	Beginning Balance	3 units @ $200 = $600
Jan. 5	Purchase	2 units @ $400 = $800
Jan. 20	Purchase	3 units @ $500 = $1,500

Retail Sales of Goods

Jan. 15	Sales	2 units @ $800 = $1,600
Jan. 31	Sales	1 units @ $1,000 = $1,000

For the January 15^th sale, the company sold 1 unit that originally cost $200 and 1 unit that cost $400. For the January 31^st sale, the 1 unit sold originally had a cost of $500.

What is the company's total sales revenue for the month of January?

Answer formatting -when typing in your answer please include a dollar sign, a comma if necessary, use whole numbers, omit any periods, and make sure your response has no spaces. For example, $1,200

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