Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I want to find the 2018 purchases. I don't know any information. I only know that my ending inventory needs a plug and it has

image text in transcribed

I want to find the 2018 purchases.

I don't know any information. I only know that my ending inventory needs a plug and it has something to do with knowing the purchases for 2018. I have attached a similar problem.

image text in transcribed

Notice the 2018 purchases 41,200 when it is added to the 80,000 beginning inventory it makes the bottom part less (121,200) coming from the cost of goods available for sale giving the needed cost of goods sold 453,500 afterwards being used to calculate income before income taxes.

image text in transcribed

image text in transcribed

Problem 8-4 Various inventory transactions, determining inventory and cost of goods (LO8-1,8-2, 8-3, 8- Johnson Corporation began 2018 with inventory of 15.000 units of its only product The units cost $8 each. The company uses a periodic inventory system and the LIFO cost method. The following transactions occurred during 2018 a. Purchased 80.000 additional units at a cost of $12 per unit. Terms of the purchases were 2/10./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 to b shipping point and freight charges of $0.50 per unit were paid by Johnson b. 1600 units purchased during the year were returned to suppliers for credit Johnson was also given credit for the freight charges of $0.50 per unit it had paid on the original purchase. The units were defective and were returned two days after they were received Sales for the year totaled 75.000 units at $17 per unit d. On December 28, 2018, Johnson purchased 5,600 additional units at $12 each The goods were shipped ob destination and arrived at Johnson's warehouse on January 4, 2019 e. 19.400 units were on hand at the end of 2018 Required 1. Complete the below table to determine the ending inventory and cost of goods sold for 2018 2. Assuming the operating expenses other than those indicated in the above transactions amounted to $162.000 determine income before income taxes for 2018 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the below table to determine the ending inventory and cont calculations. Amounts to be deducted should be indicated with mi n de la foron ) begin to 2018 purchases Beginning inventory S 178 Purchase in cont (15600) Regold 2 a. Purchased 50,000 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 to b. shipping point and freight charges of $0.50 per unit were paid by Johnson b. 1000 units purchased during the year were returned to suppliers for credit Johnson was also given credit for the freight charges of $0.50 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 45 000 units at $18 per unit d. On December 28, 2018 Johnson purchased 5.000 additional units at $10 each. The goods were shipped fob destination and arrived at Johnson's warehouse on January 4, 2019 o. 14,000 units were on hand at the end of 2018 Required: 1. Complete the below table to determine the ending inventory and cost of goods sold for 2018 2. Assuming that operating expenses other than those indicated in the above transactions amounted to $150.000, determine income before income taxes for 2018 Complete this question by entering your answers in the tabs below Required 1 Required 2 Complete the below table to determine the ending inventory and cost of goods sold for 2018. (Amounts to be deducted should te indicated with a minus in $ 0.000 41.200 Beginning inventory 2016 purchases Ending inventory 3 0 000 Beginning inventory Net purchases Purchase Returns Purchase discounts Freight Cost of goods walate for sale Less Ending inventory Cost of goods sold 500.000 1000 (9.800) 25.000 5047 Regled 2 Required: 1. Complete the below table to determine the ending inventory and cost of goods sold for 2018 2. Assuming that operating expenses other than those indicated in the above transactions amounted to $150.000, determine income before income taxes for 2018 Complete this question by entering your answers in the tabs below. Required 1 1 Required 2 Assuming that operating expenses other than those indicated in the above transactions amounted to $150,000, determine Income before income taxes for 2018 Income before income taxes $ 196,500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Cost Accounting

Authors: Robert E. Schmiedicke, Charles F. Nagy, Edward J. Vanderback, E.J. Vanderbeck C.F. Nagy

9th Edition

0538812915, 978-0538812917

More Books

Students also viewed these Accounting questions

Question

use the q-tables, Tables IX and X in Appendix A.

Answered: 1 week ago