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Posted on Sep 11, 2024

To more efficiently manage its inventory, Treynor Corporation maintains its internal inventory records using first-in, first-out (FIFO) unde a perpetual inventory system. The following information

To more efficiently manage its inventory, Treynor Corporation maintains its internal inventory records using first-in, first-out (FIFO) unde a perpetual inventory system. The following information relates to its merchandise inventory during the year Jan. 1 Inventory on hand-25,000 units cost $12.70 each. Feb. 12 Purchased 75,000 units for $13.00 each. Apr. 30 Sold 50,000 units for $20.50 each. Jul. 22 Purchased 55,000 units for $13.30 each sep. 9 Sold 75,000 units for $20.50 each. Nov. 17 Purchased 45,000 units for $13.70 each. Dec. 31 Inventory on hand-75,000 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 25,000 units with a cost of $12.20). 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 $15,000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required a Required 4 of in ending 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 places.) Cost of Goods Available for Sale Cost of Goods Sold - April 30 Cost of Goods Sold - September Inventory Balance Perpetual PIED Cost of W of Cost per Goods Cost per Cost of of units Cost per units Cost of Total Cost of of units units Cost per unit Available for unit Ending sold Goods Sold sold unit Goods Sold Goods Sold unit Sale Inventory Inventory Beg, Inventory 25,000 5 12.70 $317.500 $ 1270 5 12.70 5 1270 Purchase February 12 75,000 13.00 975,000 13.00 13.00 13.00 July 22 55.000 13.30 731,500 13.30 13.30 13.30 November 17 45,000 13.70 616.500 13.70 13.70 13.70 Total 200,000 $ 2,640,500 Required 2 > Required 1 Required 2 Required 3 Required 4 Determine the amount Treynor would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodici system. (Assume beginning Inventory under LIFO was 25,000 units with a cost of $12.20). Cost of Goods Sold - Periodic LIFO LIFO Cost of Goods Available for Sale # of units Cost of Goods Cost per Available for unit Sale 25,000 $ 12.20 $ 305,000 of units sold Cost per unit Cost of Goods Sold Ending Inventory Parlodic LIFO #of units in ending Ending unit inventory Inventory $ 12 20 Cost per $ 12.20 Beginning Inventory Purchases Feb 12 Jul 22 Nov 17 Total S 75,000 $13.00 55,000 $13.30 45,000 $13.70 200.000 975,000 731,500 616,500 $ 2,628.000 $ $ S 13.00 13.30 S 13.00 13.30 13.70 13.70 $ (Required 1 Required 3 > Required 1 Required 2 Required 3 Required 4 Determine the amount Treynor would report for its LIFO reserve at the end of the year. LIFO Reserve Journal entry worksheet 1 Record the year-end adjusting entry for the LIFO reserve. Note: Enter debits before credits Event General Journal Dobit Credit 1