Question

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 22,000 units with a cost of $12.80). 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 $12,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the amount Treynor would 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 22,000 units with a cost of $12.80). LIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Cost per Cost of Goods oos # of units Cost per Cost of # of units Available for sold unit Goods Sold unit Ending Inventory - Periodic LIFO # of units Cost per Ending in ending unit Inventory inventory $ 12.80 Sale 22,000 $ 12.80 $ 281,600 $ 12.80 $ 0 Beginning Inventory Purchases: Feb 12 Jul 22 Nov 17 72,000 52,000 42,000 188,000 $13.60 $ 13.90 $ 14.30 979,200 722,800 600,600 2,584,200 $ $ $ 13.60 13.90 14.30 $ | $ $ 0 13.60 13.90 14.30 Total $ 0 $ 0 $ 0 Required 1 Required 3 >

Answer 1

1.

FIFO	Cost of Goods Available for sale			Cost of Goods Sold			Ending Inventory
	No of Units	Cost per unit	Cost of Goods Available for sale	No of Units	Cost per unit	Cost of Goods Sold	No of units	Cost per unit	Ending Inventory
Beginning Inventory	22000	$               13.30	$    292,600.00	22000	$             13.30	$     292,600.00
Purchases :
Feb-12	72000	$               13.60	$    979,200.00	72000	$             13.60	$     979,200.00
Jul-22	52000	$               13.90	$    722,800.00	28000	$             13.90	$     389,200.00	24000	$               13.90	$    333,600.00
Nov-17	42000	$               14.30	$    600,600.00				42000	$               14.30	$    600,600.00
Total	188000		$2,595,200.00	122000		$ 1,661,000.00	66000		$    934,200.00

2.

LIFO	Cost of Goods Available for sale			Cost of Goods Sold			Ending Inventory
	No of Units	Cost per unit	Cost of Goods Available for sale	No of Units	Cost per unit	Cost of Goods Sold	No of units	Cost per unit	Ending Inventory
Beginning Inventory	22000	$               12.80	$    281,600.00				22000	$               12.80	$    281,600.00
Purchases :
Feb-12	72000	$               13.60	$    979,200.00	28000	$             13.60	$     380,800.00	44000	$               13.60	$    598,400.00
Jul-22	52000	$               13.90	$    722,800.00	52000	$             13.90	$     722,800.00
Nov-17	42000	$               14.30	$    600,600.00	42000	$             14.30	$     600,600.00
Total	188000		$2,584,200.00	122000		$ 1,704,200.00	66000		$    880,000.00

3.
LIFO Reserve = FIFO Inventory – LIFO Inventory
= $934200-880000 = $54200

4.

Account Titles	Debit	Credit
Cost of Goods Sold	$         42,200.00		=54200-12000
LIFO Reserve		$       42,200.00