Jillet Corporation began the year with inventory of $18,000$ units of its only product. The units cost $$8$ each. The company uses a Complete this question by entering your answers in the tabs below.

Assuming that operating expenses other than those indicated in the above transactions amounted to $$166,000,$ determine

income before income taxes for the year.

Income before income taxes 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 $$16,600.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

Record the year$-$end adjusting entry for the LIFO reserve.

Note: Enter debits before credits. Complete this question by entering your answers in the tabs below.

Required $2$

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 $$166,000.$

Income before income taxes under LIFO

perpetual inventory system and the FIFO cost method. The following transactions occurred during the year:

a$.$ Purchased $90,000$ additional units at a cost of $$10$ per unit. Terms of the purchases were $\frac{2}{10},\frac{n}{30}.$ The company uses the

gross method to record purchase discounts. The inventory was purchased f$.$o$.$b$.$ shipping point and additional freight costs of

$$0\mathrm{.}50$ per unit were charged to Jillet.

b$.1,800$ units purchased during the year were returned to suppliers for credit. Jillet was also given credit for the freight charges of

$$0\mathrm{.}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 $85,000$ 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 $5,800$ additional units at $$10$ each. The goods were shipped f$.$o$.$b$.$ destination and arrived at

Jillet's warehouse on January $4$ of the following year.

e$.21,200$ 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 $$166,000,$ 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 year$-$end

adjusting entry for the LIFO reserve, assuming the balance in the LIFO reserve at the beginning of the year is $$16,600.$

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 $$166,000.$

Complete this question by entering your answers in the tabs below.

Determine ending inventory and cost of goods sold at the end of the year.

Ending inventory

Cost of goods sold