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Comprehensive
The following information for 2016 is available for Marino Company:
The beginning inventory is $96000.Purchases returns of $9000 were made.Purchases of $296000 were made on terms of 3/10, n/30. Eighty percent of the discounts were taken.At December 31, purchases of $12000 were in transit, FOB destination, on terms of 3/10, n/30.The company made sales of $647000. The gross selling price per unit is twice the net cost of each unit sold.Sales allowances of $9000 were made.The company uses the LIFO periodic method and the gross method for purchase discounts.
Required:
Compute the cost of the ending inventory before the physical inventory is taken. Ignore Sales allowances in your computations.
Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.
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