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To more efficiently manage its inventory, Telnex Corporation maintains its internal inventory records using first-in, first-out (FIFO) under a perpetual inventory system. The following information relates to its inventory during the year: January 1 Beginning inventory-29,000 units. February 12 Purchased 79,000 units for $14.30 each. April 30 Sold 50,000 units for $21.80 each. July 22 Purchased 59,000 units for $14.60 each. September 9 Sold 79,000 units for $21.80 each. November 17 Purchased 49,000 units for $15.00 each. December 31 Ending inventory-87,000 units. Required: 1. Determine the amount Telnex would calculate internally for ending inventory and cost of goods sold using first-in, first-out (FIFO) under a perpetual inventory system. Beginning inventory under FIFO was 29,000 units with a cost of $14.00 each. 2. Determine the amount Telnex would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodic inventory system. Beginning inventory under LIFO was 29,000 units with a cost of $13.50 each. 3. Determine the amount Telnex would report for its LIFO reserve at the end of the year. 4. Record the year-end adjusting entry for the LIFO reserve. The balance of the LIFO reserve at the beginning of the year was $14,500.

To more efficiently manage its inventory, Telnex Corporation maintains its internal inventory records using first-in, first-out (FIFO) under a perpetual inventory system. The following information relates to its inventory during the year: January 1 Beginning inventory-29,000 units. February 12 Purchased 79,000 units for $14.30 each. April 30 Sold 50,000 units for $21.80 each. July 22 Purchased 59,000 units for $14.60 each. September 9 Sold 79,000 units for $21.80 each. November 17 Purchased 49,000 units for $15.00 each. December 31 Ending inventory-87,000 units. Required: 1. Determine the amount Telnex would calculate internally for ending inventory and cost of goods sold using first-in, first-out (FIFO) under a perpetual inventory system. Beginning inventory under FIFO was 29,000 units with a cost of $14.00 each. 2. Determine the amount Telnex would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodic inventory system. Beginning inventory under LIFO was 29,000 units with a cost of $13.50 each. 3. Determine the amount Telnex would report for its LIFO reserve at the end of the year. 4. Record the year-end adjusting entry for the LIFO reserve. The balance of the LIFO reserve at the beginning of the year was $14,500.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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To more efficiently manage its inventory, Telnex Corporation maintains its internal inventory records using first-in, first-out (FIFO) under a perpetual inventory system. The following information relates to its inventory during the year: January 1 Beginning inventory-29,000 units. February 12 Purchased 79,000 units for $14.30 each. April 30 Sold 50,000 units for $21.80 each. July 22 Purchased 59,000 units for $14.60 each. September 9 Sold 79,000 units for $21.80 each. November 17 Purchased 49,000 units for $15.00 each. December 31 Ending inventory-87,000 units. Required: 1. Determine the amount Telnex would calculate internally for ending inventory and cost of goods sold using first-in, first-out (FIFO) under a perpetual inventory system. Beginning inventory under FIFO was 29,000 units with a cost of $14.00 each. 2. Determine the amount Telnex would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodic inventory system. Beginning inventory under LIFO was 29,000 units with a cost of $13.50 each. 3. Determine the amount Telnex would report for its LIFO reserve at the end of the year. 4. Record the year-end adjusting entry for the LIFO reserve. The balance of the LIFO reserve at the beginning of the year was $14,500. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the amount Telnex would calculate internally for ending inventory and cost of goods sold using first-in, first-out (FIFO) under a perpetual inventory system. Beginning inventory under FIFO was 29,000 units with a cost of $14.00 each. Cost of Goods Available for Sale Cost of Goods Sold - April 30 Cost of Goods Sold - September 9 Inventory Balance Perpetual FIFO: Cost of Number Cost per of units unit Goods Available for Sale Number of units sold Cost per unit Cost of Goods Sold Number of units sold Cost per unit Cost of Goods Sold Total Cost of Goods Sold Number of units in Cost per ending inventory unit Ending Inventory Beginning Inventory Purchases: 29,000 $14.00 $ 406,000 $ 14.00 14.00 $ 0 $ 14.00 $ 0 February 12 July 22 November 17 Total 79,000 14.30 1,129,700 59,000 14.60 861,400 49,000 15.00 735,000 216,000 14.30 14.30 14.30 0 14.60 0 14.60 14.60 15.00 15.00 15.00 $ 3,132,100 0 $ 0 0 $ 0 $ 0 0 $ 0
Transcribed Image Text:To more efficiently manage its inventory, Telnex Corporation maintains its internal inventory records using first-in, first-out (FIFO) under a perpetual inventory system. The following information relates to its inventory during the year: January 1 Beginning inventory-29,000 units. February 12 Purchased 79,000 units for $14.30 each. April 30 Sold 50,000 units for $21.80 each. July 22 Purchased 59,000 units for $14.60 each. September 9 Sold 79,000 units for $21.80 each. November 17 Purchased 49,000 units for $15.00 each. December 31 Ending inventory-87,000 units. Required: 1. Determine the amount Telnex would calculate internally for ending inventory and cost of goods sold using first-in, first-out (FIFO) under a perpetual inventory system. Beginning inventory under FIFO was 29,000 units with a cost of $14.00 each. 2. Determine the amount Telnex would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodic inventory system. Beginning inventory under LIFO was 29,000 units with a cost of $13.50 each. 3. Determine the amount Telnex would report for its LIFO reserve at the end of the year. 4. Record the year-end adjusting entry for the LIFO reserve. The balance of the LIFO reserve at the beginning of the year was $14,500. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the amount Telnex would calculate internally for ending inventory and cost of goods sold using first-in, first-out (FIFO) under a perpetual inventory system. Beginning inventory under FIFO was 29,000 units with a cost of $14.00 each. Cost of Goods Available for Sale Cost of Goods Sold - April 30 Cost of Goods Sold - September 9 Inventory Balance Perpetual FIFO: Cost of Number Cost per of units unit Goods Available for Sale Number of units sold Cost per unit Cost of Goods Sold Number of units sold Cost per unit Cost of Goods Sold Total Cost of Goods Sold Number of units in Cost per ending inventory unit Ending Inventory Beginning Inventory Purchases: 29,000 $14.00 $ 406,000 $ 14.00 14.00 $ 0 $ 14.00 $ 0 February 12 July 22 November 17 Total 79,000 14.30 1,129,700 59,000 14.60 861,400 49,000 15.00 735,000 216,000 14.30 14.30 14.30 0 14.60 0 14.60 14.60 15.00 15.00 15.00 $ 3,132,100 0 $ 0 0 $ 0 $ 0 0 $ 0
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