Jillet Corporation began the year with inventory of 12,000 units of its only product The units cost $8 each The company uses a perpetual inventory system and the FIFO cost method The following transactions occurred during the year Purchased 60,000 additional units at a cost of $10 per unit Terms of the purchases were 210 210 , n30 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 50 per unit were charged to Jillet 1,200 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 ) Sales for the year totaled 55,000 units at $18 per unit (Hint The cost of the inventory sold includes the purchase cost of those units plus freight less purchase discount ) On December 28, Jillet purchased 5,200 additional units at $10 each The goods were shipped f o b destination and arrived at Jillets warehouse on January 4 of the following year 15,800 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 $154,000, 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 $15,400 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 $154,000 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

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Jillet Corporation began the year with inventory of 12,000 units of its only product. The units cost $8 each. The company uses a perpetual inventory

Jillet Corporation began the year with inventory of 12,000 units of its only product. The units cost $8 each. The company uses a perpetual inventory system and the FIFO cost method. The following transactions occurred during the year:

Purchased 60,000 additional units at a cost of $10 per unit. Terms of the purchases were 210/210 , n30/30 . The company uses the gross method to record purchase discounts. The inventory was purchased f.o.b. shipping point and additional freight costs of $0.50 per unit were charged to Jillet.
1,200 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.)
Sales for the year totaled 55,000 units at $18 per unit. (Hint: The cost of the inventory sold includes the purchase cost of those units plus freight less purchase discount.)
On December 28, Jillet purchased 5,200 additional units at $10 each. The goods were shipped f.o.b. destination and arrived at Jillets warehouse on January 4 of the following year.
15,800 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 $154,000, 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 $15,400.

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 $154,000.