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 hand20,000 units; cost $12.20 each.
Feb.		12		Purchased 70,000 units for $12.50 each.
Apr.		30		Sold 50,000 units for $20.00 each.
Jul.		22		Purchased 50,000 units for $12.80 each.
Sep.		9		Sold 70,000 units for $20.00 each.
Nov.		17		Purchased 40,000 units for $13.20 each.
Dec.		31		Inventory on hand60,000 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 20,000 units with a cost of $11.70). 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 $10,000.

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.)

Perpetual FIFO:	Cost of Goods Available for Sale			Cost of Goods Sold - April 30			Cost of Goods Sold - September 9				Inventory Balance
	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units sold	Cost per unit	Cost of Goods Sold	Total Cost of Goods Sold	# of units in ending inventory	Cost per unit	Ending Inventory
Beg. Inventory	20,000	$12.20	$244,000	0	$12.20			$12.20	$0		0	$12.20	$0
Purchases:
February 12	70,000	12.50	875,000	0	12.50		0	12.50			0	12.50	0
July 22	50,000	12.80	640,000	0	12.80	0	0	12.80			0	12.80
November 17	40,000	13.20	528,000	0	13.20		0	13.20				13.20
Total	180,000		$2,287,000	0		$0	0		$0	$0	0		$0

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 20,000 units with a cost of $11.70).

LIFO	Cost of Goods Available for Sale			Cost of Goods Sold - Periodic LIFO			Ending Inventory - Periodic LIFO
	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units in ending inventory	Cost per unit	Ending Inventory
Beginning Inventory	20,000	$11.70	$234,000		$11.70	$0		$11.70
Purchases:
Feb 12	70,000	$12.50	875,000		$12.50			$12.50
Jul 22	50,000	$12.80	640,000		$12.80			$12.80
Nov 17	40,000	$13.20	528,000		$13.20			$13.20
Total	180,000		$2,277,000	0		$0	0		$0

Determine the amount Treynor would report for its LIFO reserve at the end of the year.

LIFO Reserve

Record the year-end adjusting entry for the LIFO reserve, assuming the balance at the beginning of the year was $10,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

• Record the year-end adjusting entry for the LIFO reserve.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1