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Johnson Corporation began 2013 with inventory of 13,000 units of its only product. The units cost $9 each. The company uses a periodic inventory system

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Johnson Corporation began 2013 with inventory of 13,000 units of its only product. The units cost $9 each. The company uses a periodic inventory system and the LIFO cost method. The following transactions occurred during 2013 a. Purchased 65,000 additional units at a cost of $12 per unit Terms of the purchases were 3/10, n/30, and 100% of the net purchases were paid for within the 10-day discount period. The company uses the gross method to record purchase discounts. The merchandise was purchased f.o.b shipping point and freight charges of $ 50 per unit were paid by Johnson b. 1.300 units purchased during the year were returned to suppliers for credit Johnson was also given credit for the freight charges of $ 50 per unit it had paid on the original purchase. The units were defective and were returned two days alter they were received. c. Sales for the year totaled 60,000 units at $19 per unit d. On December 28, 2013. Johnson purchased 5,300 additional units at $12 each. The goods were shipped f.o.b destination and arrived at Johnson's warehouse on January 4, 2014 e. 16,700 units were on hand at the end of 2013 Required: 1. Determine ending inventory and cost of goods sold for 2013. (Calculate the discount based on the net purchases during the period.) Johnson Corporation began 2013 with inventory of 13,000 units of its only product. The units cost $9 each. The company uses a periodic inventory system and the LIFO cost method. The following transactions occurred during 2013 a. Purchased 65,000 additional units at a cost of $12 per unit Terms of the purchases were 3/10, n/30, and 100% of the net purchases were paid for within the 10-day discount period. The company uses the gross method to record purchase discounts. The merchandise was purchased f.o.b shipping point and freight charges of $ 50 per unit were paid by Johnson b. 1.300 units purchased during the year were returned to suppliers for credit Johnson was also given credit for the freight charges of $ 50 per unit it had paid on the original purchase. The units were defective and were returned two days alter they were received. c. Sales for the year totaled 60,000 units at $19 per unit d. On December 28, 2013. Johnson purchased 5,300 additional units at $12 each. The goods were shipped f.o.b destination and arrived at Johnson's warehouse on January 4, 2014 e. 16,700 units were on hand at the end of 2013 Required: 1. Determine ending inventory and cost of goods sold for 2013. (Calculate the discount based on the net purchases during the period.)

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