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Jillet Corporation began the year with inventory of 1 3 , 0 0 0 units of its only product. The units cost $ 8 each.
Jillet Corporation began the year with inventory of units of its only product. The units cost $ each. The company uses a
perpetual inventory system and the FIFO cost method. The following transactions occurred during the year:
a Purchased additional units at a cost of $ per unit. Terms of the purchases were The company uses the
gross method to record purchase discounts. The inventory was purchased fob shipping point and additional freight costs of
$ per unit were charged to Jillet.
b units purchased during the year were returned to suppliers for credit. Jillet was also given credit for the freight charges of
$ 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 units at $ per unit. Hint: The cost of the inventory sold includes the purchase cost of those
units plus freight less purchase discount.
d On December Jillet purchased additional units at $ each. The goods were shipped fob destination and arrived at
Jillet's warehouse on January of the following year.
e units were on hand at the end of the year.
Required:
Determine ending inventory and cost of goods sold at the end of the year.
Assuming that operating expenses other than those indicated in the above transactions amounted to $ determine
income before income taxes for the year.
For financial reporting purposes, the company uses LIFO amounts based on a periodic inventory system Record the yearend
adjusting entry for the LIFO reserve, assuming the balance in the LIFO reserve at the beginning of the year is $
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 $
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