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Johnson Corporation began 2018 with inventory of 28,000 units of its only product. The units cost $8 each. The company uses a periodic inventory system
Johnson Corporation began 2018 with inventory of 28,000 units of its only product. The units cost $8 each. The company uses a periodic inventory system and the LIFO cost method. The following transactions occurred during 2018: 000 additional units at a cost of $10 per unit. Terms of the purchases were 1/10 n/30, and 100% of the purchases were paid for within the 10-day discount period. The company uses the gr merchandise was purchased fo.b. shipping point and freight charges of $0.60 per unit were paid by Johnson. of $0.60 per unit it had paid on the original purchase. The units were defective and were returned two days after they were oss method to record purchase discounts. The units purchased during the year were returned to suppliers for credit. Johnson was also given credit for the freight charges received. c. Sales for the year totaled 135,000 units at $17 per unit. d. On December 28. 2018. Johnson purchased 6,800 additional units at $10 each. The goods were shipped fo.b. destination and arrived at Johnson's warehouse on January 4, 2019 e. 30,200 units were on hand at the end of 2018. 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 $186,000, determine income before income taxes for 2018. Complete this question by entering your answers in the tabs below Required 1 Required 2 Complete the below table 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.) S 224,000 Beginning inventory 2018 purchases Ending inventory S 224,000
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