o 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.1Inventory on hand21,000 units; cost $12.30 each.Feb.12Purchased 71,000 units for $12.60 each.Apr.30Sold 50,000 units for $20.10 each.Jul.22Purchased 51,000 units for $12.90 each.Sep.9Sold 71,000 units for $20.10 each.Nov.17Purchased 41,000 units for $13.30 each.Dec.31Inventory on hand63,000 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 21,000 units with a cost of $11.80).

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 $11,000.