### QUESTION 4**Honest Tea, Inc.** is a merchandiser. Use the following information to determine its Inventory balance on its December 31 year-end balance sheet. **Note:** All purchases of inventory are on account.- **Cost of Goods Sold during the year:** $31,000- **January 1 Inventory:** $10,000- **Sales during the year:** $75,000- **December 31 Accounts Receivable:** $24,000- **Purchases of Inventory on Account during the year:** $36,000**December 31 Inventory** = $______**Explanation:** To calculate the December 31 Inventory, use the formula:\[ \text{Ending Inventory} = \text{Beginning Inventory} + \text{Purchases} - \text{Cost of Goods Sold} \]Where:- Beginning Inventory (January 1 Inventory) = $10,000- Purchases of Inventory on Account during the year = $36,000- Cost of Goods Sold during the year = $31,000Therefore:\[ \text{Ending Inventory} = 10,000 + 36,000 - 31,000 \]\[ \text{Ending Inventory} = 15,000 \]The December 31 Inventory is **$15,000**.

The cost of goods sold(COGS) comprises all the direct expenses such as direct material, direct…

Honest Tea, Inc. is a merchandiser. Use the following information to its Inventory balance on its December 31 year-end balance sheet. Note: All purchases of inventory are on account. Cost of Goods Sold during the year $31,000 January 1 Inventory 10,000 Sales during the year 75,000 December 31 Accounts Receivable 24,000 Purchases of Inventory on Account during the year 36,000 December 31 Inventory = $_

Honest Tea, Inc. is a merchandiser. Use the following information to its Inventory balance on its December 31 year-end balance sheet. Note: All purchases of inventory are on account. Cost of Goods Sold during the year $31,000 January 1 Inventory 10,000 Sales during the year 75,000 December 31 Accounts Receivable 24,000 Purchases of Inventory on Account during the year 36,000 December 31 Inventory = $_

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Accounting You have the following information for Sheffield Inc. Sheffield Inc. uses the periodic method of accounting for its inventory transactions. March 1 Beginning inventory 2,000 liters at a cost of 60¢ per liter. March 3 Purchased 2,500 liters at a cost of 62¢ per liter. March 5 Sold 2,300 liters for $1.05 per liter. March 10 Purchased 4,000 liters at a cost of 69¢ per liter. March 20 Purchased 2,300 liters at a cost of 77¢ per liter. March 30 Sold 5,200 liters for $1.25 per liter. Prepare partial income statements for 2022 through gross profit, under each of the following cost flow assumptions. (Round answers to 2 decimal places, e.g. 125.25.) (1) Specific identification method assuming: (i) The March 5 sale consisted of 1,000 liters from the March 1 beginning inventory and 1,300 liters from the March 3 purchase; and The March 30 sale consisted of the following number of units sold from beginning inventory and each purchase: 450 liters from March 1; 550 liters from March 3;…
esc Honest Tea, Inc. is a merchandiser. Use the following information to its Inventory balance on its December 31 year-end balance sheet. Note: All purchases of inventory are on account. Cost of Goods Sold during the year January 1 Inventory Sales during the year December 31 Accounts Receivable Purchases of Inventory on Account during the year December 31 Inventory = $. 1 Q A N Click Save and Submit to save and submit. Click Save All Answers to save all answers. 2 W S Ma # 3 E D x 'I X $34,000 $ 4 10,000 77,000 24,000 35,000 C с R % or op F 5 T MacBook Pro V < 6 G Y & 7 H B * 00 つ 8 J N O Save All Answe O 0 K M
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