Question
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 hand30,000 units; cost $14.10 each. | ||
Feb. | 12 | Purchased 80,000 units for $14.40 each. | ||
Apr. | 30 | Sold 50,000 units for $21.90 each. | ||
Jul. | 22 | Purchased 60,000 units for $14.70 each. | ||
Sep. | 9 | Sold 80,000 units for $21.90 each. | ||
Nov. | 17 | Purchased 50,000 units for $15.10 each. | ||
Dec. | 31 | Inventory on hand90,000 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. 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 $20,000.
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.)
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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.
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3. Determine the amount Treynor would report for its LIFO reserve at the end of the year.
Life Reserve :
4. Record the year-end adjusting entry for the LIFO reserve, assuming the balance at the beginning of the year was $20,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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