Johnson Corporation began 2013 with inventory of 20,000 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 2013: b. Purchased 100,000 additional units at a cost of $12 per unit. Terms of the purchases were 2/10, n/30, and 80% of the net 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 $.50 per unit were paid by Johnson. 2,000 units purchased during the year were returned to suppliers for credit. Johnson was also given credit for the freight charges of $.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 95,000 units at $18 per unit. d. On December 28, 2013, Johnson purchased 6,000 additional units at $12 each. The goods were shipped f.o.b. destination and arrived at Johnson's warehouse on January 4, 2014. e. 23,000 units were on hand at the end of 2013.

Johnson Corporation began 2013 with inventory of 20,000 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 2013: b. Purchased 100,000 additional units at a cost of $12 per unit. Terms of the purchases were 2/10, n/30, and 80% of the net 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 $.50 per unit were paid by Johnson. 2,000 units purchased during the year were returned to suppliers for credit. Johnson was also given credit for the freight charges of $.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 95,000 units at $18 per unit. d. On December 28, 2013, Johnson purchased 6,000 additional units at $12 each. The goods were shipped f.o.b. destination and arrived at Johnson's warehouse on January 4, 2014. e. 23,000 units were on hand at the end of 2013.

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Description: Please provide answer in text (Without image) Johnson Corporation began 2013 with inventory of 20,000 units of its onlyproduct. The units cost $9 each. The company uses a periodic inventory systemand the LIFO cost method. The following transactions o

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 15E: Habicht Company was formed in 2018 to produce a single product. The production and sales for the...

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