Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Johnson Corporation began 2018 with inventory of 15,000 units of its only product. The units cost $7 each. The company uses a periodic inventory system

image text in transcribed
image text in transcribed
image text in transcribed
Johnson Corporation began 2018 with inventory of 15,000 units of its only product. The units cost $7 each. The company uses a periodic inventory system and the LIFO cost method. The following transactions occurred during 2018: a. Purchased 75,000 additional units at a cost of $10 per unit. Terms of the purchases were 2/10n/30, and 100% of the purchases re paid for within the 10-day discount period. The company uses the gross method to record purchase discounts. The merchandise was purchased fo.b. shipping point and freight charges of $0.60 per unit were paid by Johnson. b. 1,500 units purchased during the year were returned to suppliers for credit. Johnson was also given credit for the freight charges of $0.60 per unit it had paid on the original purchase. The units were defective and were returned two days after they were received. c. Sales for the year totafed 70,000 units at $19 per unit. d. On December 28, 2018, Johnson purchased 5,500 additional units at $11 each. The goods were shipped fo.b. destination and arrived at Johnson's warehouse on January 4, 2019 e. 18,500 units were on hand at the end of 2018 9-28 Required 1. Complete the below table to determine the ending inventory and cost of goods sold for 2018 2. Assuming that operating expenses other than those indicated in the above transactions amounted to $160,000, determine income before income taxes for 2018. nces 1. Complete the below table to determine the ending inventory and cost of goods sold tor 2018. 2. Assuming that operating expenses other than those indicated in the above transactions amounted to $160,.000, determine income before income taxes for 2018 Complete this question by entering your answers in the tabs below. 08 Required 1 Required 2 Complete the below tabl to determine the ending inventory and cost of goods sold for 2018. (Do not round your intermediate calculations. Amounts to be deducted should be indicated with a minus sign.) Beginning inventory 2018 purchases Ending inventory es Beginning inventory Net purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold Required 2> Required 1 Required 2 Assuming that operating expenses other than those indicated in the above transactions amounted to $ income before income taxes for 2018. (Do not round your intermediate calculations.) 160,000, determine en Income before income taxes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditor Going Concern Reporting A Review Of Global Research And Future Research Opportunities

Authors: Marshall A. Geiger, Anna Gold, Philip Wallage

1st Edition

0367649489, 978-0367649487

More Books

Students also viewed these Accounting questions

Question

to encourage a drive for change by developing new ideas;

Answered: 1 week ago

Question

4 What are the alternatives to the competences approach?

Answered: 1 week ago