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Mogul Processing maintains its internal inventory records using average cost under a perpetual inventory system. The following information relates to its inventory during the year:

Mogul Processing maintains its internal inventory records using average cost under a perpetual inventory system. The following
information relates to its inventory during the year:
January 1 Beginning inventory-80,000 units.
February 14 Purchased 120,000 units for $4.50 each.
March 5 Sold 150,000 units for $14.00 each.
August 27 Purchased 50,000 units for $4.80 each.
September 12 Sold 60,000 units for $14.00 each.
November 15 Purchased 70,000 units for $4.90 each.
December 31 Ending inventory 110,000 units.
Required:
Determine the amount Mogul would calculate internally for ending inventory and cost of goods sold using average cost under a
perpetual inventory system. Beginning inventory under average cost was 80,000 units with a average cost of $4.25 each.
Determine the amount Mogul would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO)
under a periodic inventory system. Beginning inventory under LIFO was 80,000 units with a cost of $4.00 each.
Determine the amount Mogul would report for its LIFO reserve at the end of the year.
Record the year-end adjusting entry for the LIFO reserve. The balance of the LIFO reserve at the beginning of the year was
$20,000.
Complete this question by entering your answers in the tabs below.
Determine the amount Mogul would report for its LIFO reserve at the end of the year.
LIFO Reserve
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