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—94,000 units; cost $4.00 each. | ||
Feb. | 14 | Purchased 106,000 units for $5.00 each. | ||
Mar. | 5 | Sold 164,000 units for $14.00 each. | ||
Aug. | 27 | Purchased 64,000 units for $6.00 each. | ||
Sep. | 12 | Sold 74,000 units for $14.00 each. | ||
Dec. | 31 | Inventory on hand—26,000 units. |
Required:
1. Determine the amount Tipton would calculate internally
for ending inventory and cost of goods sold using average cost
under a perpetual inventory system.
2. Determine the amount Tipton would report
externally for ending inventory and cost of goods sold using
last-in, first-out (LIFO) under a periodic inventory system.
3. Determine the amount Tipton 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
$9,400.
I need revision please help.
Average Method | Inventory on hand | Cost of Goods Sold | Inventory Balance | ||||||
Unit | Cost | Value | Unit | Cost | Value | Unit | Cost | Value | |
Beginning | 94000 | 4 | 376000 | 94000 | 4 | 376000 | |||
Purchase 14-Feb | 106000 | 5 | 530000 | 106000 | 5 | 530000 | |||
200000 | 4.53 | 906000 | |||||||
Sale 5-Mar | 164000 | 4.53 | 742920 | 36000 | 4.53 | 163080 | |||
Purchase 27-Aug | 64000 | 6 | 384000 | 64000 | 6 | 384000 | |||
100000 | 5.47 | 547080 | |||||||
Sale 12-Sep | 74000 | 5.47 | 404839 | 26000 | 5.47 | 142241 |
LIFO | Inventory on hand | Cost of Goods Sold | Inventory Balance | ||||||
Unit | Cost | Value | Unit | Cost | Value | Unit | Cost | Value | |
Beginning | 94000 | 4 | 376000 | 94000 | 4 | 376000 | |||
Purchase 14-Feb | 106000 | 5 | 530000 | 106000 | 5 | 530000 | |||
Sale 5-Mar | 106000 | 5 | 530000 | ||||||
Sale 5-Mar | 58000 | 4 | 232000 | ||||||
164000 | 762000 | 36000 | 4 | 144000 | |||||
Purchase 27-Aug | 64000 | 6 | 384000 | ||||||
Sale 12-Sep | 64000 | 6 | 384000 | ||||||
Sale 12-Sep | 10000 | 4 | 40000 | ||||||
74000 | 424000 | 26000 | 4 | 104000 |
LIFO Reserve |
Difference between different methods of inventory valuation
Inventory closing value as per Average Method | 142241 | ||||||||
Inventory closing value as per LIFO Method | 104000 | ||||||||
LIFO Reserve | 38241 |
Opening LIFO Reserve-9400 |
Reserve need to create |
=38241-9400 |
=28841 |
Journal Entry
Cost of Goods Sold | Dr | 28841 | |
LIFO Reserve | Cr | 28841 |
Tipton Processing maintains its internal inventory records using average cost under a perpetual inventory system. The...
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...
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...
I only need to find the average cost per unit under COGS. PLEASE SHOW WORK 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-94,000 units; cost $4.00 each. Feb. 14 Purchased 106,000 units for $5.00 each. Mar. 5 Sold 164,000 units for $14.00 each. Aug. 27 Purchased 64,000 units for $6.00 each. Sep. 12 Sold 74,000 units for $14.00...
PLEASE GIVE SOLUTION IN THE SAME FORMAT AS THE IMAGE THANK YOU! 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-84, eee units; cost $4.00 each. Feb. 14 Purchased 116,000 units for $5.00 each. Mar. 5 Sold 154,000 units for $14.00 each. Aug. 27 Purchased 54,200 units for $6.00 each. Sep. 12 Sold 64,800 units for $14.00 each. Dec....
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—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-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...
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 $12.20 each. Feb. 12 Purchased 70,000 units for $12.50 each. Apr. 30 Sold 50,000 units for $20.00 each. Jul. 22 Purchased 50,000 units for $12.80 each. Sep. 9 Sold 70,000 units for $20.00 each. Nov. 17 Purchased 40,000 units for...
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