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 hand21,000 units; cost $13.20 each. Feb. 12 Purchased 71,000 units for $13.50 each. Apr. 30 Sold 50,000 units for $21.00 each. Jul. 22 Purchased 51,000 units for $13.80 each. Sep. 9 Sold 71,000 units for $21.00 each. Nov. 17 Purchased 41,000 units for $14.20 each. Dec. 31 Inventory on hand63,000 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 21,000 units with a cost of $12.70). 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 $11,000.

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 "Co places.) Cost of Goods Available for Sale Cost of Goods Sold - April 30 Cost of Goods Sold - September 9 Inventory Balance Perpetual FIFO: # of Cost per units Cost of # of Cost per Goods units unit Available for Sale 21,000 $13.20 $ 277,200 Cost per unit Cost of Goods Sold # of units Cost per sold unit Cost of Goods Sold # of units in ending inventory Total Cost of Goods Sold unit Ending Inventory sold $ 13.20 $ 13.20 $ 0 $ 13.20 $ 0 0 Beg. Inventory Purchases February 12 July 22 November 17 Total 71,000 51,000 41,000 13.50 13.80 14.20 13.50 13.80 14.20 13.50 13.80 958,500 703,800 582,200 $ 2,521,700 0 13.50 13.80 14.20 14.20 184,000 0 $ 0 0 $ 0 0 $ 0 LIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Cost per Cost of Goods # of units Cost per Cost of Available for # of units unit sold unit Goods Sold Sale 21,000 $12.70 $ 266,700 $ 12.70 $ 0 Ending Inventory - Periodic LIFO # of units Cost per Ending in ending unit Inventory inventory $ 12.70 13.50 Beginning Inventory Purchases: Feb 12 Jul 22 Nov 17 Total $ $ $ $ $ $ 71,000 $13.50 51,000 $13.80 41,000 $ 14.20 184,000 958,500 703,800 582,200 2,511,200 13.50 13.80 14.20 13.80 14.20 $ $ $ 0 $ 0 0 $ 0 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. General Journal Debit Credit Event 1