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. Feb. Apr. Jul. 1 Inventory on hand-26,000 units; cost $12.80 each. Purchased 76,000 units for $13.10 each. Sold 50,000 units for $20.60 each. Purchased 56,000 units for $13.40 each. Sold 76,000 units for $20.60 each. Purchased 46,000 units for $13.80 each. Inventory on hand-78,000 units. Dec. 12 30 22 Sep. 9 Nov. 17 31 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 26,000 units with a cost of $12.30). 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 $16,000.

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. Feb. Apr. Jul. 1 Inventory on hand-26,000 units; cost $12.80 each. Purchased 76,000 units for $13.10 each. Sold 50,000 units for $20.60 each. Purchased 56,000 units for $13.40 each. Sold 76,000 units for $20.60 each. Purchased 46,000 units for $13.80 each. Inventory on hand-78,000 units. Dec. 12 30 22 Sep. 9 Nov. 17 31 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 26,000 units with a cost of $12.30). 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 $16,000.

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Description: 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 theyear

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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