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 hand31,000 units cost $14 20 each Feb 12 Purchased 81,000 units for $14 50 each Apr 30 Sold 50,000 units for $22 00 each Jul 22 Purchased 61,000 units for $14 80 each Sep 9 Sold 81,000 units for $22 00 each Nov 17 Purchased 51,000 units for $15 20 each Dec 31 Inventory on hand93,000 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 31,000 units with a cost of $13 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 $15,500 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 31,000 $14 20 $440,200 $14 20 $440,200 $14 20 $0 $14 20 $0 Purchases February 12 81,000 14 50 1,174,500 14 50 435,000 14 50 739,500 14 50 0 July 22 61,000 14 80 902,800 14 80 0 14 80 444,000 14 80 621,600 November 17 51,000 15 20 775,200 15 20 15 20 15 20 775,200 Total 224,000 $3,292,700 $875,200 $1,183,500 $2,058,700 Required 1 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 31,000 units with a cost of $13 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 31,000 $13 70 $424,700 $13 70 $0 $13 70 Purchases Feb 12 81,000 $14 50 1,174,500 $14 50 $14 50 Jul 22 61,000 $14 80 902,800 $14 80 740,000 $14 80 Nov 17 51,000 $15 20 775,200 $15 20 $15 20 Total 224,000 $3,277,200 $740,000

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 10, 2024

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 hand31,000 units; cost $14.20 each.
Feb.	12	Purchased 81,000 units for $14.50 each.
Apr.	30	Sold 50,000 units for $22.00 each.
Jul.	22	Purchased 61,000 units for $14.80 each.
Sep.	9	Sold 81,000 units for $22.00 each.
Nov.	17	Purchased 51,000 units for $15.20 each.
Dec.	31	Inventory on hand93,000 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 31,000 units with a cost of $13.70). 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 $15,500.

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
Perpetual FIFO:	# 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	31,000	$14.20	$440,200	?	$14.20	$440,200	?	$14.20	$0		?	$14.20	$0
Purchases:
February 12	81,000	14.50	1,174,500	?	14.50	435,000	?	14.50	739,500		?	14.50	0
July 22	61,000	14.80	902,800	?	14.80	0	?	14.80	444,000		?	14.80	621,600
November 17	51,000	15.20	775,200	?	15.20		?	15.20			?	15.20	775,200
Total	224,000		$3,292,700	?		$875,200	?		$1,183,500	$2,058,700	?		?

Required 1

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 31,000 units with a cost of $13.70).

LIFO	Cost of Goods Available for Sale			Cost of Goods Sold - Periodic LIFO			Ending Inventory - Periodic LIFO
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	31,000	$13.70	$424,700	?	$13.70	$0	?	$13.70	?
Purchases:
Feb 12	81,000	$14.50	1,174,500	?	$14.50		?	$14.50	?
Jul 22	61,000	$14.80	902,800	?	$14.80	740,000	?	$14.80	?
Nov 17	51,000	$15.20	775,200		$15.20		?	$15.20	?
Total	224,000		$3,277,200	?		$740,000	?		?