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-23,000 units; cost $12.50 each. Feb. 12 Purchased 73,000 units for $12.80 each. Apr. 30 Sold 50,000 units for $20.30 each. Jul. 22 Purchased 53,000 units for $13.10 each. Sep. 9 Sold 73,000 units for $20.30 each. Nov. 17 Purchased 43,000 units for $13.50 each. Dec. 31 Inventory on hand-69,000 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 23,000 units with a cost of $12.00). 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 $13,000. 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.) Cost of Goods Available for Sale Cost of Goods Sold - April 30 Cost of Goods Sold - September 9 Inventory Balance Perpetual FIFO: Goods Cost per Cost of # of Cost per units unit Available for Sale 23,000 $12.50 $ 287,500 # of units sold Cost of Goods Sold of units Cost per sold unit Cost of Goods Sold Total Cost of Goods Sold # of units in ending inventory Cost per unit unit Ending Inventory $ 12.50 $ 12.50 $ 0 $ 12.50 $ 0 12.80 12.80 12.80 0 Beg. Inventory Purchases: February 12 July 22 November 17 Total 73,000 53,000 12.80 13.10 13.10 0 13.10 13.10 13.50 934,400 694,300 580,500 $ 2,496,700 13.50 13.50 13.50 43,000 192,000 0 $ 0 0 $ 0 0 $ 0 Complete this question by entering your answers in the tabs below. Required 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 23,000 units with a cost of $12.00). Cost of Goods Sold - Periodic LIFO LIFO Cost of Goods Available for Sale Cost of Goods # of units Cost per Available for unit Sale 23,000 $12.00 $ 276,000 of units sold Cost per unit Cost of Goods Sold Ending Inventory - Periodic LIFO # of units Cost per Ending in ending unit Inventory inventory $ 12.00 $ 12.00 $ 0 $ $ Beginning Inventory Purchases: Feb 12 Jul 22 Nov 17 Total 12.80 13.10 $ $ 73,000 $ 12.80 53,000 $13.10 43,000 $13.50 192,000 934,400 694,300 580,500 $ 2,485,200 12.80 13.10 13.50 $ 13.50 $ 0 $ 0 0 $ 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 required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the year-end adjusting entry for the LIFO reserve. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal
