Problem $8-4($Algo$)$ Various inventory transactions; determining inventory and cost of goods; LIFO reserve $[$LO$8-1,8-2,8-3,8-4,8-6]$

Jillet Corporation began the year with inventory of $21,000$ 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 $105,000$ additional units at a cost of $$10$ per unit. Terms of the purchases were $\frac{2}{10},\frac{n}{30}.$ The company uses the gross method to record purchase discounts. The inventory was purchased f$.$o$.$b$.$ shipping point and additional freight costs of $$0\mathrm{.}50$ per unit were charged to Jillet.

b$.2,100$ units purchased during the year were returned to suppliers for credit. Jillet was also given credit for the freight charges of $$0\mathrm{.}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 $100,000$ 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 $6,100$ 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$.23,900$ units were on hand at the end of the year.

Required:

Determine ending inventory and cost of goods sold at the end of the year.

Assuming that operating expenses other than those indicated in the above transactions amounted to $$172,000,$ determine income before income taxes for the year.

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 $$17,200.$

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 $$172,000.$

Required $1$

Determine ending inventory and cost of goods sold at the end of the year.

$\backslash$table$[[$Ending inventory,$],[$Cost of goods sold,$]]$

Assuming that operating expenses other than those indicated in the above transactions amounted to $$172,000,$ determine income before income taxes for the year.

Income before income taxes

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 $$17,200.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

Record the year$-$end adjusting entry for the LIFO reserve.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[1,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

Required $1$

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 $$172,000.$

Income before income taxes under LIFO