1 | FIFO | |||||||||
It is assumed that goods purchased first are sold first | ||||||||||
Purchases | Cost of goods sold | Ending inventory | ||||||||
# of units | Cost per unit | Total cost | # of units sold | Cost per unit | Cost of merchandise sold | Ending inventory | ||||
Jan 1. | 20000 | 12.2 | 244000 | |||||||
Feb 12. | 70000 | 12.5 | 875000 | 20000 | 12.2 | 244000 | ||||
70000 | 12.5 | 875000 | ||||||||
Apr 30. | 50000 units sold as follows: | |||||||||
20000 | 12.2 | 244000 | 40000 | 12.5 | 500000 | |||||
30000 | 12.5 | 375000 | (70000-30000) | |||||||
(50000-20000) | ||||||||||
Jul 22. | 50000 | 12.8 | 640000 | 40000 | 12.5 | 500000 | ||||
50000 | 12.8 | 640000 | ||||||||
Sep 9. | 70000 units sold as follows: | 20000 | 12.8 | 256000 | ||||||
40000 | 12.5 | 500000 | (50000-30000) | |||||||
30000 | 12.8 | 384000 | ||||||||
(70000-40000) | ||||||||||
Nov 17. | 40000 | 13.2 | 528000 | 20000 | 12.8 | 256000 | ||||
40000 | 13.2 | 528000 | ||||||||
Total | ||||||||||
Ending inventory=256000+528000=$ 784000 | ||||||||||
2 | LIFO | |||||||||
It is assumed that goods purchased last are sold first | ||||||||||
Purchases | Cost of goods sold | Ending inventory | ||||||||
# of units | Cost per unit | Total cost | # of units sold | Cost per unit | Cost of merchandise sold | Ending inventory | ||||
Jan 1. | 20000 | 12.2 | 244000 | |||||||
Feb 12. | 70000 | 12.5 | 875000 | 20000 | 12.2 | 244000 | ||||
70000 | 12.5 | 875000 | ||||||||
Apr 30. | 50000 units sold as follows: | |||||||||
50000 | 12.5 | 625000 | 20000 | 12.2 | 244000 | |||||
20000 | 12.5 | 250000 | ||||||||
(70000-50000) | ||||||||||
Jul 22. | 50000 | 12.8 | 640000 | 20000 | 12.2 | 244000 | ||||
20000 | 12.5 | 250000 | ||||||||
50000 | 12.8 | 640000 | ||||||||
Sep 9. | 70000 units sold as follows: | 20000 | 12.2 | 244000 | ||||||
50000 | 12.8 | 640000 | ||||||||
20000 | 12.5 | 250000 | ||||||||
Nov 17. | 40000 | 13.2 | 528000 | 20000 | 12.2 | 244000 | ||||
40000 | 13.2 | 528000 | ||||||||
Total | ||||||||||
Ending inventory=244000+528000=$ 772000 | ||||||||||
3 | LIFO reserve=FIFO inventory-LIFO inventory=784000-772000=$ 12000 | |||||||||
4 | Balance at the beginning=10000 | |||||||||
Adjustment to be made=12000-10000=$ 2000 | ||||||||||
Date | Account titles | Debit | Credit | |||||||
Dec 31. | Cost of goods sold | 2000 | ||||||||
LIFO reserve | 2000 | |||||||||
(LIFO reserve adjusted) | ||||||||||
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To more efficiently manage its inventory, Treynor Corporation maintains its internal inventory records using first-...
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 Feb. 12 Jul. 22 Sep. 9 Nov. 17 Dec. 31 Inventory on hand-20,000 units; cost $12.20 each. Purchased 70,000 units for $12.50 each. Sold 50,000 units for $20.00 each. Purchased 50,000 units for $12.80 each. Sold 70,000 units for $20.00 each. Purchased 40,000 units for...
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—20,000 units; cost $13.10 each. Feb. 12 Purchased 70,000 units for $13.40 each. Apr. 30 Sold 50,000 units for $20.90 each. Jul. 22 Purchased 50,000 units for $13.70 each. Sep. 9 Sold 70,000 units for $20.90 each. Nov. 17 Purchased 40,000 units for...
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—30,000 units; cost $14.10 each. Feb. 12 Purchased 80,000 units for $14.40 each. Apr. 30 Sold 50,000 units for $21.90 each. Jul. 22 Purchased 60,000 units for $14.70 each. Sep. 9 Sold 80,000 units for $21.90 each. Nov. 17 Purchased 50,000 units for...
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...
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-21,800 units; cost $13.20 each. Feb. 12 Purchased 71,eee units for $13.50 each. Apr. 30 Sold 50,eee units for $21.ee each. Jul. 22 Purchased 51,000 units for $13.8e each. Sep. 9 Sold 71,089 units for $21.ee each. Nov. 17 Purchased 41,eee units for...
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...
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Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question Exercise 8-19 (Static) Perpetual FIFO adjusted to periodic LIFO; LIFO reserve [LO8-1, 8-4, 8-6] 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: points...
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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-20,000 units; cost $13.10 each. Feb. 12 Purchased 70,000 units for $13.40 each. Apr. 30 Sold 50, 800 units for $20.99 each. Jul. 22 Purchased 5e,eee units for $13.70 each. Sep....
Tipton Processing maintains its internal inventory records using average cost under a perpetual inventory system. The following information relates to its inventory during the year: Jan. 1 Inventory on hand-92,000 units; cost $4.00 each. Feb. 14 Purchased 108,000 units for $5.00 each. Mar. 5 Sold 162,000 units for $14.00 each. Aug. 27 Purchased 62,000 units for $6.00 each. Sep. 12 Sold 72,000 units for $14.00 each. Dec. 31 Inventory on hand–28,000 units. Required: 1. Determine the amount Tipton would calculate...
Tipton Processing maintains its internal inventory records using average cost under a perpetual inventory system. The following information relates to its inventory during the year: Jan. 1 Inventory on hand-92,000 units; cost $4.00 each. Feb. 14 Purchased 108,000 units for $5.00 each. Mar. 5 Sold 162,000 units for $14.00 each. Aug. 27 Purchased 62,000 units for $6.00 each. Sep. 12 Sold 72,000 units for $14.00 each. Dec. 31 Inventory on hand–28,000 units. Required: 1. Determine the amount Tipton would calculate...