Camino Jet Engines, Inc. Is a supplier of jet engine parts. The company began the most reecent Fiscal Year with inventory of 75 units. The units cost 8,500 each. The company uses a perpetual inventory system to account for inventory. The following transactions occurred during the year. a. Purchases 50 additional units at a cost of $8,900 per unit. Terms of the purchases were 2/10, n/30, and payments was made within 10-days discount period. The company uses the gross method to record purchase discounts. The merchandise was purchased f.o.b shipping point. The company paid freight charges of $500 per unit b. 6 of the units purchased during the year were returned to the manufacturer for credit. The company were also given credit for the freight charges of $500 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 70 units at a selling price of $13,500 per unit. d. On December 28, The company purchased 10 additional units at $9,200 each. The units were shipped f.o.b desitination and arrived at the company's warehouse on january 4 of the following year. REQUIRED 1: Determine ending inventory and cost of goods sold at the end of the year using the FIFO method. FIFO ending inventory: FIFO Cost of goods sold: REQUIRED 2: Assuming that operating expenses other than those indicated in the aboce transactions amounted to $150,000 determine income before income taxes for the year using the FIFO method. Net Income before taxes using FIFO: REQUIRED 3: Detemine ending inventory and cost of goods sold at the end of the year using the LIFO method: LIFO ending inventory LIFO Cost of Good Sold: REQUIRED 4: Assuming that operating expenses other than those indicated in the above transctions amounted to $150,000 determine the income taxes for the year using the LIFO method: Net Income before taxes using LIFO:

Camino Jet Engines, Inc. Is a supplier of jet engine parts. The company began the most reecent Fiscal Year with inventory of 75 units. The units cost 8,500 each. The company uses a perpetual inventory system to account for inventory. The following transactions occurred during the year. a. Purchases 50 additional units at a cost of $8,900 per unit. Terms of the purchases were 2/10, n/30, and payments was made within 10-days discount period. The company uses the gross method to record purchase discounts. The merchandise was purchased f.o.b shipping point. The company paid freight charges of $500 per unit b. 6 of the units purchased during the year were returned to the manufacturer for credit. The company were also given credit for the freight charges of $500 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 70 units at a selling price of $13,500 per unit. d. On December 28, The company purchased 10 additional units at $9,200 each. The units were shipped f.o.b desitination and arrived at the company's warehouse on january 4 of the following year. REQUIRED 1: Determine ending inventory and cost of goods sold at the end of the year using the FIFO method. FIFO ending inventory: FIFO Cost of goods sold: REQUIRED 2: Assuming that operating expenses other than those indicated in the aboce transactions amounted to $150,000 determine income before income taxes for the year using the FIFO method. Net Income before taxes using FIFO: REQUIRED 3: Detemine ending inventory and cost of goods sold at the end of the year using the LIFO method: LIFO ending inventory LIFO Cost of Good Sold: REQUIRED 4: Assuming that operating expenses other than those indicated in the above transctions amounted to $150,000 determine the income taxes for the year using the LIFO method: Net Income before taxes using LIFO:

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter27: Adjustments, Financial Statements, And Year-end Accounting For A Manufacturing business

Section: Chapter Questions

Problem 1MP: Reese Manufacturing Company manufactures and sells a limited line of products made to customer...

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Question

	Camino Jet Engines, Inc. Is a supplier of jet engine parts. The company began the most reecent Fiscal Year with inventory of 75 units. The units cost 8,500 each. The company uses a perpetual inventory system to account for inventory. The following transactions occurred during the year.


a.	Purchases 50 additional units at a cost of $8,900 per unit. Terms of the purchases were 2/10, n/30, and payments was made within 10-days discount period. The company uses the gross method to record purchase discounts. The merchandise was purchased f.o.b shipping point. The company paid freight charges of $500 per unit

b.	6 of the units purchased during the year were returned to the manufacturer for credit. The company were also given credit for the freight charges of $500 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 70 units at a selling price of $13,500 per unit.

d.	On December 28, The company purchased 10 additional units at $9,200 each. The units were shipped f.o.b desitination and arrived at the company's warehouse on january 4 of the following year.

	REQUIRED 1:
	Determine ending inventory and cost of goods sold at the end of the year using the FIFO method.

	FIFO ending inventory:

	FIFO Cost of goods sold:

	REQUIRED 2:
	Assuming that operating expenses other than those indicated in the aboce transactions amounted to $150,000 determine income before income taxes for the year using the FIFO method.

	Net Income before taxes using FIFO:

	REQUIRED 3:
	Detemine ending inventory and cost of goods sold at the end of the year using the LIFO method:

	LIFO ending inventory

	LIFO Cost of Good Sold:

	REQUIRED 4:
	Assuming that operating expenses other than those indicated in the above transctions amounted to $150,000 determine the income taxes for the year using the LIFO method:

	Net Income before taxes using LIFO:

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