Hello me with the following

johnson corporation began 2016 with inventory of 17,000 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 85,000 additional units at a cost of $10 per unit. terms of the purchases were 2/10, 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 $0.40 per unit were paid by johnson.

You didn´t post the complete information of the exercise, I searched the exercise online and tried to ask the most useful question.

Explanation:

Determination of the cost of the ending inventory (LIFO cost method):

Beginning inventory (17,000 x$9)                                            $153,000

Add: Purchases

Purchases (85,000 x$10)                                      $850,000

Less: Returns (1,700 x $10.40)                                  -$17,680

Less: Discount [2% of $10 x (85,000 -1,700)]          -$16,660

Add: Freight-in (85,000 x $0.40)                               $34,000           $849,660

Cost of goods available for sale (17,000 + 83,300)                           $1,002,660

Less: Ending inventory                                                                      $186,660

Cost of Goods Sold                                                                            $816,000

Note: The 5,700 units purchased on December 28, 2016 were not included as the shipment (FOB destination) did not reach the warehouse before December 31, 2016.

Determination of the ending inventory:

Date of purchase         units                unit cost          Total Cost

Beginning inventory   17,000             $9                    $153,000

2016 Purchases           3,300               $10.20             $33,660

Total                           20,300             ---                    $186,660

Note:

Inventory available for sale 17,000 + 83,300 =100,300

Sales for the year 80,000 units

Ending inventory in units                   20,300

Unit cost of purchases is determined as follows,

$10 less 2% discount + freight-in charges of $0.40

98% of $10 + $0.40 = $9.80 + $0.40 =$10.20

Requirement 2

Sales (80,000 x $18)                           $1,440,000

Less: Cost of goods sold                    $816,000

Gross profit                                        $624,000

Less: Other operating expenses         $164,000

Income before income taxes             $460,000

Hence, income before income taxes for 2016 is $460,000

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number

answer; ///liability;