Comprehensive
Response to the following problem:
The following information for 2010 is available for the Marino Company:
1. The beginning inventory is $100,000.
2. Purchases of $300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken.
3. Purchases returns of $4,000 were made.
4. At December 31, purchases of $20,000 were in transit, FOB destination, on terms of 2/10, n/30.
5. The company made sales of $640,000. The gross selling price per unit is twice the net cost of each unit sold.
6. Sales allowances of $6,000 were made.
7. The company uses the LIFO periodic method and the gross method for purchases discounts.
Required
1. Compute the cost of the ending inventory before the physical inventory is taken.
2. 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.