Question
Hello Please help me with the following Johnson Corporation began 2016 with inventory of 17,000 units of its only product. The units cost $9 each.
Hello Please help me with the following
Johnson Corporation began 2016 with inventory of 17,000 units of its only product. The units cost $9 each. The company uses a periodic inventory system and the LIFO cost method. The following transactions occurred during 2016: |
a. | Purchased 85,000 additional units at a cost of $10 per unit. Terms of the purchases were 2/10, n/30, and 100% of the purchases were paid for within the 10-day discount period. The company uses the gross method to record purchase discounts. The merchandise was purchased f.o.b. shipping point and freight charges of $0.40 per unit were paid by Johnson. |
b. | 1,700 units purchased during the year were returned to suppliers for credit. Johnson was also given credit for the freight charges of $0.40 per unit it had paid on the original purchase. The units were defective and were returned two days after they were received. |
c. | Sales for the year totaled 80,000 units at $18 per unit. |
d. | On December 28, 2016, Johnson purchased 5,700 additional units at $10 each. The goods were shipped f.o.b. destination and arrived at Johnson's warehouse on January 4, 2017. |
e. | 20,300 units were on hand at the end of 2016. |
Required: | |
1. | Complete the below table to determine the ending inventory and cost of goods sold for 2016. (Do not round your intermediate calculations. Amounts to be deducted should be indicated with a minus sign.) |
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