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Needing help with this problem (please see attachment). Not sure how to really work it out to get the answers. Let me know if you
Needing help with this problem (please see attachment). Not sure how to really work it out to get the answers. Let me know if you have any questions or need me to do anything.
Johnson Corporation began 2016 with inventory of 29,000 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 2016: a.Purchased 145,000 additional units at a cost of $12 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 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.2,900 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 140,000 units at $18 per unit. d.On December 28, 2016, Johnson purchased 6,900 additional units at $12 each. The goods were shipped f.o.b. destination and arrived at Johnson's warehouse on January 4, 2017. e.31,100 units were on hand at the end of 2016. Required: 1. Complete the below table to determine the ending inventory and cost of goods sold for 2016. (Do not round your intermediate calculations. Amounts to be deducted should be indicated with a minus sign.) Beginning inventory: 2016 purchases: Ending inventory: Beginning inventory: Net purchases: Cost of goods available for sale: Less: Ending inventory: Cost of goods sold: 2. Assuming that operating expenses other than those indicated in the above transactions amounted to $188,000, determine income before income taxes for 2016. (Do not round your intermediate calculations.) Income before income taxes: I "v'c-u rt tutor in 1:1: M Problem 8-4 .l. a .ACCTiifllCH-E : {INSET 3' as how to Take (- C G) ezlo.mheducalion.comfhm.tpx?,=0.4284-4299379953,1491273422106 and 100% of the purchases were paid forwithin the 107day discount period The company uses the A gross method to record purchase discounts The merchandise was purchased i.o.tr. shipping point and ireight charges of $0.50 per unit were paid by Johnson. I}. 2900 units purchased during the year were returned to suppliers for credit Johnson was also given credit forthe freight charges oi $0.50 per unit it had paid on the original purchase The units were defective and were retun'red two days after they were received. :2. Sales iorthe yeartotaled 140 000 units a1$15 per unit d. On December28, 2015 Johnson purchased 5,900 additional units at $12 each. The goods were shippedf o b destination and arrived at Johnson's warehouse on January 4 2017 e. 31.100 units were on hand at the end of 2015. Required: 1. Complete the below table to determine the ending inventory and cost of goods sold for 2015. (Do not round your intermediate calculations. Amounts to be deducted should be indicated with a minus sign.) Beginning inventory 5 251,000 2015 purchases Ending inventory $ 251,000 Beginning inventory $ 251,000 Net purchases: Purchases $ 1,740,000 Relums (35,250) Purchase discounts (17,052) Freight-in T2500 1,759,198 Cost of goods available tor sale 2,020,198 Less: Ending inventory (251,000) Cost of goods sold $ 1,759,198Step by Step Solution
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