Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Johnson Corporation began the year with inventory of 11,000 units of its only product. The units cost $8 each. The company uses a perpetual inventory

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Johnson Corporation began the year with inventory of 11,000 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. a. Purchased 55,000 additional units at a cost of $10 per unit. Terms of the purchases were 2/10, 1/30, and 100% of the 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 $0.50 per unit were paid by Johnson b. 1.100 units purchased during the year were returned to suppliers for credit. Johnson was also given credit for the freight charges $0.50 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 totaled 50,000 units at $18 per unit. d. On December 28, Johnson purchased 5,100 additional units at $10 each. The goods were shipped fob. destination and arrived at Johnson's warehouse on January 4 of the following year, e. 14,900 units were on hand at the end of the year. Required: 1. Determine ending inventory and cost of goods sold at the end of the year. 2. Assuming that operating expenses other than those indicated in the above transactions amounted to $152,000, determine income before income taxes for the year. 3. 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 $15,200. 4. 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 $152,000, Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine ending inventory and cost of goods sold at the end of the year. Ending Inventory Cost of goods sold Required 2 > Prev 8 of 13 39 Next > pter 8 Homework 1 Saved 00 8 76 sints Johnson Corporation began the year with inventory of 11,000 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 a. Purchased 55,000 additional units at a cost of $10 per unit. Terms of the purchases were 2/10, 1/30, and 100% of the purchases were paid for within the 10-day discount period. The company uses the gross method to record purchase discounts. The merchandise was purchased fob shipping point and freight charges of $0.50 per unit were paid by Johnson b. 1100 units purchased during the year were returned to suppliers for credit. Johnson was also given credit for the freight charges of $0,50 per unit it had pold on the original purchase. The units were defective and were returned two days after they were received c. Sales for the year totaled 50,000 units at $18 per unit. d. On December 28, Johnson purchased 5,100 additional units at $10 each. The goods were shipped to.b. destination and arrived at Johnson's warehouse on January 4 of the following year e. 14,900 units were on hand at the end of the year. eBook Print References Required: 1. Determine ending Inventory and cost of goods sold at the end of the year 2. Assuming that operating expenses other than those indicated in the above transactions amounted to $152,000, determine income before income taxes for the year. 3. For financial reporting purposes, the company uses LIFO famounts 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 $15,200. 4. 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 $152.000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 Assuming that operating expenses other than those indicated in the above transactions amounted to $152,000, determine Income before income taxes for the year Income before income taxes d. On December 28, Johnson purchased 5,100 additional units at S10 each. The goods were shipped to.b.destination and arrived at Johnson's warehouse on January 4 of the following year. e. 14.900 units were on hand at the end of the year. Required: 1. Determine ending Inventory and cost of goods sold at the end of the year. 2. Assuming that operating expenses other than those indicated in the above transactions amounted to $152,000, determine Income before income taxes for the year 3. 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 $15.200 4. 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 S152,000. eBook Pant References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 For financial reporting purposes, the company uses LIFO Camounts 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 $15,200.no entry is required for a transaction/avent, select "No journal entry required in the first account field) View transaction et Journal entry worksheet Record the year-end adjusting entry for the LIFO reserve. Not Enter bits before credits ME Graw bu ezto.mheducation.com/ext/map/index.html?_con-congexternal_browser=0&daunchurl=https%253A%252F%252Fnewconnect.mheducation.com%252F Homework Saved b. 1100 units purchased during the year were returned to suppliers for credit. Johnson was also given credit for the freight charges of $0.50 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 totaled 50,000 units at $18 per unit d. On December 28, Johnson purchased 5,100 additional units at $10 each. The goods were shipped fob,destination and arrived at Johnson's warehouse on January 4 of the following year. e. 14,900 units were on hand at the end of the year. Required: 1. Determine ending inventory and cost of goods sold at the end of the year. 2. Assuming that operating expenses other than those indicated in the above transactions amounted to $152.000, determine Income before income taxes for the year 3. 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 $15.200 4. 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 $152,000 1 3 nces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 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 $152,000 Income before income taxes under UFO Prev 8 of 13 39 Next > pter 8 Homework 1 Saved 00 8 76 sints Johnson Corporation began the year with inventory of 11,000 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 a. Purchased 55,000 additional units at a cost of $10 per unit. Terms of the purchases were 2/10, 1/30, and 100% of the purchases were paid for within the 10-day discount period. The company uses the gross method to record purchase discounts. The merchandise was purchased fob shipping point and freight charges of $0.50 per unit were paid by Johnson b. 1100 units purchased during the year were returned to suppliers for credit. Johnson was also given credit for the freight charges of $0,50 per unit it had pold on the original purchase. The units were defective and were returned two days after they were received c. Sales for the year totaled 50,000 units at $18 per unit. d. On December 28, Johnson purchased 5,100 additional units at $10 each. The goods were shipped to.b. destination and arrived at Johnson's warehouse on January 4 of the following year e. 14,900 units were on hand at the end of the year. eBook Print References Required: 1. Determine ending Inventory and cost of goods sold at the end of the year 2. Assuming that operating expenses other than those indicated in the above transactions amounted to $152,000, determine income before income taxes for the year. 3. For financial reporting purposes, the company uses LIFO famounts 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 $15,200. 4. 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 $152.000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 Assuming that operating expenses other than those indicated in the above transactions amounted to $152,000, determine Income before income taxes for the year Income before income taxes d. On December 28, Johnson purchased 5,100 additional units at S10 each. The goods were shipped to.b.destination and arrived at Johnson's warehouse on January 4 of the following year. e. 14.900 units were on hand at the end of the year. Required: 1. Determine ending Inventory and cost of goods sold at the end of the year. 2. Assuming that operating expenses other than those indicated in the above transactions amounted to $152,000, determine Income before income taxes for the year 3. 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 $15.200 4. 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 S152,000. eBook Pant References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 For financial reporting purposes, the company uses LIFO Camounts 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 $15,200.no entry is required for a transaction/avent, select "No journal entry required in the first account field) View transaction et Journal entry worksheet Record the year-end adjusting entry for the LIFO reserve. Not Enter bits before credits ME Graw bu ezto.mheducation.com/ext/map/index.html?_con-congexternal_browser=0&daunchurl=https%253A%252F%252Fnewconnect.mheducation.com%252F Homework Saved b. 1100 units purchased during the year were returned to suppliers for credit. Johnson was also given credit for the freight charges of $0.50 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 totaled 50,000 units at $18 per unit d. On December 28, Johnson purchased 5,100 additional units at $10 each. The goods were shipped fob,destination and arrived at Johnson's warehouse on January 4 of the following year. e. 14,900 units were on hand at the end of the year. Required: 1. Determine ending inventory and cost of goods sold at the end of the year. 2. Assuming that operating expenses other than those indicated in the above transactions amounted to $152.000, determine Income before income taxes for the year 3. 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 $15.200 4. 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 $152,000 1 3 nces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 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 $152,000 Income before income taxes under UFO

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Essentials Of Federal Taxation 2018

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

9th Edition

9781260007640

Students also viewed these Accounting questions