Tipton Processing maintains its internal inventory records using average cost under a perpetual inventory system. The following information relates to its inventory during the year: Jan. 1 Inventory on hand-86,000 units; cost $4.00 each. Feb. 14 Purchased 114,000 units for $5.00 each. Mar. 5 Sold 156,000 units for $14.00 each. Aug. 27 Purchased 56,000 units for $6.00 each. Sep. 12 Sold 66,000 units for $14.00 each. Dec. 31 Inventory on hand34,000 units. Required: 1. Determine the amount Tipton would calculate internally for ending inventory and cost of goods sold using average cost under a perpetual inventory system. 2. Determine the amount Tipton would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodic inventory system. 3. Determine the amount Tipton 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 $8,600. Inventory on hand Cost of Goods Sold Perpetual Average # of units Cost per unit Inventory # of units Avg.Cost | Cost of Value sold per unit Goods Sold $ 344,000 570,000 Inventory Balance # of units in Cost per Ending ending inventory unit inventory 86,000 $ 4.00 $ 344,000 114,000 $ 5.00 $ 570,000 200,000 $ 914,000 Beginning Inventory Purchase - February 14 86,000 114,000 $ $ 4.00 5.00 Sale - March 5 156,000 Purchase - August 27 56,000 $ 6.00 336,000 2.00 Sale - September 12 66,000 Total 256,000 $ 1,250,000 $ 00$ Tipton Processing maintains its internal inventory records using average cost under a perpetual inventory system. The following information relates to its inventory during the year: Jan. 1 Inventory on hand-86,000 units; cost $4.00 each. Feb. 14 Purchased 114,000 units for $5.00 each. Mar. 5 Sold 156,000 units for $14.00 each. Aug. 27 Purchased 56,000 units for $6.00 each. Sep. 12 Sold 66,000 units for $14.00 each. Dec. 31 Inventory on hand34,000 units. Required: 1. Determine the amount Tipton would calculate internally for ending inventory and cost of goods sold using average cost under a perpetual inventory system. 2. Determine the amount Tipton would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodic inventory system. 3. Determine the amount Tipton 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 $8,600. Inventory on hand Cost of Goods Sold Perpetual Average # of units Cost per unit Inventory # of units Avg.Cost | Cost of Value sold per unit Goods Sold $ 344,000 570,000 Inventory Balance # of units in Cost per Ending ending inventory unit inventory 86,000 $ 4.00 $ 344,000 114,000 $ 5.00 $ 570,000 200,000 $ 914,000 Beginning Inventory Purchase - February 14 86,000 114,000 $ $ 4.00 5.00 Sale - March 5 156,000 Purchase - August 27 56,000 $ 6.00 336,000 2.00 Sale - September 12 66,000 Total 256,000 $ 1,250,000 $ 00$
