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 hand-28,000 units; cost $13.00 each. Feb. 12 Purchased 78,000 units for $13.30 each. Apr. 30 Sold 50,000 units for $20.80 each. Jul. 22 Purchased 58,000 units for $13.60 each. Sep. 9 Sold 78,000 units for $20.80 each. Nov. 17 Purchased 48,000 units for $14.00 each. Dec. 31 Inventory on hand-84,000 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 28,000 units with a cost of $12.50). 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 $18,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 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. (Round "Cost per Unit" to 2 decimal places.) Inventory Balance Perpetual FIFO: Cost of Goods Available for Sale Cost of Goods Sold - April 30 Cost of Goods Sold - September 9 Cost of # of Cost per # of Goods units Cost per Cost of # of units Cost per Cost of units unit Available for unit sold Goods Sold sold unit Goods Sold Sale 28,000 $ 13.00 $ 364,000 28,000 S 13.00 $ 364,000 $ $ 13.00 $ 0 Total Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory S 13.00 $ 0 13.30 13.30 0 Beg. Inventory Purchases: February 12 July 22 November 17 Total 13.30 13.60 1,037,400 788.800 13.30 13.60 0 78,000 58,000 48,000 212,000 13.60 14.00 13.60 14.00 14.00 14.00 672,000 $ 2,862,200 28,000 S 364,000 0 S 0 $ 364,000 0 $ 0 Required 1 Required 2 > 2 Required 1 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 periodic inventory system. (Assume beginning inventory under LIFO was 28,000 units with a cost of $12.50). LIFO Cost of Goods #of units Cost per Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO # of units Cost per Available for Cost of unit sold unit Goods Sold Sale 28,000 $12.50 $ $ 350.000 $ 12.50 $ 0 Ending Inventory - Periodic LIFO # of units Cost per Ending in ending unit inventory Inventory S 12.50 0 $ 13.30) S Beginning Inventory Purchases: Feb 12 Jul 22 Nov 17 Total 13.60 78,000 $13.30 58,000 $13.60 48,000 $ 14.00 212,000 co o al S 1,037,400 788,800 672.000 $ 2,848,200 13.30 13.60 14.00 14.00 S 0 $ 0 S 0 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 Required 1 Required 2 Required 3 Required 4 Record the year-end adjusting entry for the LIFO reserve, assuming the balance at the beginning of the year was $18,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the year-end adjusting entry for the LIFO reserve. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal
