Exercise 8-19 (Algo) Perpetual FIFO adjusted to periodic LIFO; LIFO reserve [LO8-1, 8-4, 8-6]

To more efficiently manage its inventory, Treynor Corporation maintains its internal inventory records using first-in, first-out (FIFO) under a perpetual inventory system. The following information relates to its merchandise inventory during the year:

Jan.		1		Inventory on hand29,000 units; cost $14.00 each.
Feb.		12		Purchased 79,000 units for $14.30 each.
Apr.		30		Sold 50,000 units for $21.80 each.
Jul.		22		Purchased 59,000 units for $14.60 each.
Sep.		9		Sold 79,000 units for $21.80 each.
Nov.		17		Purchased 49,000 units for $15.00 each.
Dec.		31		Inventory on hand87,000 units.

Required: 1. Determine the amount Treynor would calculate internally for ending inventory and cost of goods sold using first-in, first-out (FIFO) under a perpetual inventory system. 2. Determine the amount Treynor would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodic inventory system. (Assume beginning inventory under LIFO was 29,000 units with a cost of $13.50). 3. Determine the amount Treynor would report for its LIFO reserve at the end of the year. 4. Record the year-end adjusting entry for the LIFO reserve, assuming the balance at the beginning of the year was $14,500.