Jilet Corporation began the year with inventory of 13,000 units of its only product. The units cost $8 each. The company uses a perpetual inventory system and the FFO cost method. The following transactions occurred during the year: a. Purchased 65,000 additional units at a cost of $10 per unit. Terms of the purchases were 2/10,n/30. The company uses the gross method to record purchase discounts. The inventory was purchased fo.b. shipping point and additional freight costs of $0.50 per unit were charged to Jillet. b. 1,300 units purchased during the year were returned to suppliers for credit. Jillet was also given credit for the freight charges of $0.50 per unit on the original purchase. The units were defective and were returned two days after they were received. The remaining inventory was paid within the discount period. (Hint. The discount applies only to inventory and not the freight.) c. Sales for the year totaled 60,000 units at $18 per unit. (Hint: The cost of the inventory sold includes the purchase cost of those units plus freight less purchase discount.) d. On December 28 , Jillet purchased 5,3p0 additional units at $10 each. The goods were shipped fo.b. destination and arrived at Jillet's warehouse on January 4 of the following year. e. 16,700 units were on hand at the end of the yeat. Required: 1. Determine ending inventory and cost of goods sold at the end of the year. 2. Assuming that operating expenses other than those indicated in the above transactions amounted to $156,000, defermine income before income taxes for the year. 3. For financial reporting purposes, the company uses Lifo (amounts based on a periodic inventory system). Record the year-end adjusting entry for the LFO reserve, assuming the balance in the LiFO reserve at the beginning of the year is $15,600. 4. Determine the amount the company would report as income before taxes for the year under LIFO. Operating expenses other than those indicated in the above transactions amounted to $156,000. Complete this question by entering your answers in the tabs below. Detemine ending inventory and cost of goods sold at the end of the yeac. 1. Determine ending inventory and cost of goods sold at the end of the yeat. 2. Assuming that operating expenses other than those indicated in the above transactions amounted to $156,000, determine income before income taxes for the year. 3. For financial reporting purposes, the company uses LIFO (amounts based on a periodic inventory system). Record the year-end adjusting entry for the LIFO reserve, assuming the balance in the LIFO reserve at the beginning of the year is $15,600. 4. Determine the amount the company would report as income before taxes for the year under LiFO. Operating expenses other than those indicated in the above transactions amounted to $156,000. Complete this question by entering your answers in the tabs below. Assuming that operating exponses othar than those indicated in the above transactions amounted to $156,000, determine income before income taxes for the year. or financlal reporting purposes, the company uses UFO (amounts based on a periodic inventory system). Record the year-cnd adjusting intry for the LIFO reserve, assuming the balance in the LUFO reserve at the beginning of the year is $15,600. lote: If na chitry is required for a transactionvevent, select "No journal entry required" in the first account field. Journal entry worksheet Record the year-end adjusting entry for the UFO reserve. Fore: Enher decits before cetspis. Determine the amount the company would report as income before taxes for the year under Lifo. Operating expehses other then those indicated in the above transactions amounted to 5136,000
