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 Cost of Goods Available for Sale Cost of Goods Sold April 30 Cost of Goods Sold September 9 Inventory Balance Perpetual FIFO Cost per Cost of of of Cost per Goods units units unit Available for sold Sale 20,000 $ 12 20 $ 244 000 20,000 of units Cost per sold unit Cost of Goods Sold Cost of Goods Sold unit Total Cost of Goods Sold of units in ending inventory Cost per unit Ending Inventory $ 12 20 $ 244,000 $ 12 20 $ 0 12 20 $ 12 50 70 000 12 50 Beg Inventory Purchases February 12 July 22 November 17 Total 12 50 12 80 875 000 0 12 80 70,000 50,000 40,000 180,000 875 000 640,000 528,000 $ 2,287,000 12 50 12 80 13 20 12 80 13 20 13 20 13 20 90 000 $ 1,119,000 0 $ 0 $ 1,119,000 0 $ LIFO Cost of Goods Available for Sale Cost of Goods Sold Periodic LIFO Cost of Goods Cost per of units of units Cost per Cost of Available for unit sold unit Goods Sold Sale 20,000 $11 70 $ 234,000 $ 11 70 $ Ending Inventory Periodic LIFO of units Cost per Ending in ending unit inventory Inventory $ 11 70 12 50 250,000 20,000 $ 250,000 Beginning Inventory Purchases Feb 12 Jul 22 Nov 17 Total 12 50 12 80 12 80 70,000 $12 50 50,000 $ 12 80 40,000 $13 20 180,000 875,000 640,000 528,000 $ 2,277,000 20,000 $ $ $ 20,000 $ $ $ 13 20 $ 13 20 $ 250,000 20,000 $ 250,000

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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

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.

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Cost of Goods Available for Sale Cost of Goods Sold - April 30 Cost of Goods Sold - September 9 Inventory Balance Perpetual FIFO: Cost per Cost of # of # of Cost per Goods units units unit Available for sold Sale 20,000 $ 12.20 $ 244.000 20,000 # of units Cost per sold unit Cost of Goods Sold Cost of Goods Sold unit Total Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory $ 12.20 $ 244,000 $ 12.20 $ 0 12.20 $ 12.50 70.000 12.50 Beg. Inventory Purchases February 12 July 22 November 17 Total 12.50 12.80 875.000 0 12.80 70,000 50,000 40,000 180,000 875.000 640,000 528,000 $ 2,287,000 12.50 12.80 13.20 12.80 13.20 13.20 13.20 90.000 $ 1,119,000 0 $ 0 $ 1,119,000 0 $ LIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Cost of Goods Cost per # of units # of units Cost per Cost of Available for unit sold unit Goods Sold Sale 20,000 $11.70 $ 234,000 $ 11.70 $ Ending Inventory - Periodic LIFO # of units Cost per Ending in ending unit inventory Inventory $ 11.70 12.50 250,000 20,000 $ 250,000 Beginning Inventory Purchases: Feb 12 Jul 22 Nov 17 Total 12.50 12.80 12.80 70,000 $12.50 50,000 $ 12.80 40,000 $13.20 180,000 875,000 640,000 528,000 $ 2,277,000 20,000 $ $ $ 20,000 $ $ $ 13.20 $ 13.20 $ 250,000 20,000 $ 250,000