Jillet Corporation began the year with inventory of 28,000 units of its only product. The units...

Transcribed Image Text:

Jillet Corporation began the year with inventory of 28,000 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 140,000 additional units at a cost of $10 per unit. Terms of the purchases were 2/10, 1/30. The company uses the gross method to record purchase discounts. The inventory was purchased f.o.b. shipping point and additional freight costs of $0.50 per unit were charged to Jillet. b. 2,800 units purchased during the year were returned to suppliers for credit. Jillet was also given credit for the freight charges of $0.50 per unit on the original purchase. The units were defective and were returned two days after they were received. The remaining inventory was paid within the discount period. (Hint: The discount applies only to inventory and not the freight.) c. Sales for the year totaled 135,000 units at $18 per unit. (Hint: The cost of the inventory sold includes the purchase cost of those units plus freight less purchase discount.) d. On December 28, Jillet purchased 6,800 additional units at $10 each. The goods were shipped f.o.b. destination and arrived at Jillet's warehouse on January 4 of the following year. e. 30,200 units were on hand at the end of 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 $18,600. 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 $186,000. Answer is not complete. 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 (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 $18,600. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 1 No Transaction 1 General Journal Cost of goods sold LIFO reserve Required 1 Required 2 Required 3 Required 4 Debit Credit 18,600 292,460 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 $186,000. Income before income taxes under LIFO Jillet Corporation began the year with inventory of 28,000 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 140,000 additional units at a cost of $10 per unit. Terms of the purchases were 2/10, 1/30. The company uses the gross method to record purchase discounts. The inventory was purchased f.o.b. shipping point and additional freight costs of $0.50 per unit were charged to Jillet. b. 2,800 units purchased during the year were returned to suppliers for credit. Jillet was also given credit for the freight charges of $0.50 per unit on the original purchase. The units were defective and were returned two days after they were received. The remaining inventory was paid within the discount period. (Hint: The discount applies only to inventory and not the freight.) c. Sales for the year totaled 135,000 units at $18 per unit. (Hint: The cost of the inventory sold includes the purchase cost of those units plus freight less purchase discount.) d. On December 28, Jillet purchased 6,800 additional units at $10 each. The goods were shipped f.o.b. destination and arrived at Jillet's warehouse on January 4 of the following year. e. 30,200 units were on hand at the end of 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 $18,600. 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 $186,000. Answer is not complete. 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 (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 $18,600. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 1 No Transaction 1 General Journal Cost of goods sold LIFO reserve Required 1 Required 2 Required 3 Required 4 Debit Credit 18,600 292,460 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 $186,000. Income before income taxes under LIFO