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 relates to its merchandise inventory during the year: Jan. 1 Inventory on hand-25,000 units; cost $13.60 each. Feb. 12 Purchased 75,000 units for $13.90 each. Apr. 30 Sold 50,000 units for $21.40 each. Jul. 22 Purchased 55,000 units for $14.20 each. Sep. 9 Sold 75,000 units for $21.40 each. Nov. 17 Purchased 45,000 units for $14.60 each. Dec. 31 Inventory on hand–75,000 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 25,000 units with a cost of $13.10). 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 $15,000. 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: Cost per Cost per # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost of Goods Sold # of units Cost per sold Cost of Goods Sold Total Cost of Goods Sold # of units in ending inventory Ending Inventory unit unit unit Beg. Inventory 25,000 $ 13.60 $ 340,000 $ 13.60 $ 13.60 $ 0 $ 13.60 $ 0 Purchases: 13.90 13.90 13.90 13.90 0 February 12 July 22 November 17 14.20 14.20 0 14.20 75,000 55,000 45,000 200,000 1,042,500 781,000 657,000 $ 2,820,500 14.20 14.60 14.60 14.60 14.60 Total 0 $ 0 0 $ 0 $ 0 0 $ 0

Answer 1

Cost of goods available for sale Cost per unit Cost of goods available for sale 25000 $ 13.60 $ 340,000 Cost of Goods sold-Apri 30 Cost of Goods sold-Sept 9 NO of Units Cost per unt Cost of goods sold NO of Units Cost per unit Cost of goods sold 25000 $ 13.60 $ 340,000 0 $ 13.60 $ Inventory Balance NO of Units Cost per unit Ending Inventory 0 $ 13.60 $ Requirement (1) Perpetual FIFO NO of Unts Beginning Inventory Purchases : 12-Feb 22-Jul 17-Nov Total 347,500 695,000 355,000 75000 $ 55000 $ 45000 $ 200000 13.90 $ 14.20 $ 14.60 $ $ 1,042,500 781,000 657,000 2,820,500 25000 $ 0 $ 0$ 50000 13.90 $ 14.20 $ 14.60 $ $ 50000 $ 25000 $ $ 75000 13.90 $ 14.20 $ 14.60 $ S 0 $ 30000 $ 45000 $ 75000 13.90 $ 14.20 $ 14.60 $ $ 426,000 657,000 1,083,000 687,500 1,050,000 Cost of goods available for sale Cost per unit Cost of goods available for sale 25000 $ 13.10 $ 327,500 Cost of Goods sold-Periodic ifo NO of Units Cost per unit Cost of goods sold 0 $ 13.10 $ Inventory Balance NO of Units Cost per unit Ending Inventory 25000 $ 13.10 $ 327,500 Requirement (2) Periodic LIFO NO of Units Beginning Inventory Purchases : 12-Feb 22-Jul 17-Nov Total 695,000 75000 $ 55000 $ 45000 $ 200000 13.90 $ 14.20 $ 14.60 $ $ 1,042,500 781,000 657,000 2,808,000 25000 $ 55000 $ 45000 $ 125000 13.90 $ 14.20 $ 14.60 $ $ 347,500 781,000 657,000 1,785,500 50000 $ 0 $ 0 $ 75000 13.90 $ 14.20 $ 14.60 $ $ 1,022,500 Requirement (3) LIFO Reserve (1083000-1022500) $ 60,500 Requirement (4) Event Credit General Journal 1 Cost of goods sold LIFO Reserve Debt $ 45,500 $ 45,500 (To record adjusting entry) Note : Comment down for any issues