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—26,000 units; cost $13.70 each. Feb. 12 Purchased 76,000 units for $14.00 each. Apr. 30 Sold 50,000 units for $21.50 each. Jul. 22 Purchased 56,000 units for $14.30 each. Sep. 9 Sold 76,000 units for $21.50 each. Nov. 17 Purchased 46,000 units for $14.70 each. Dec. 31 Inventory on hand—78,000 units. 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 $13.20). 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 $13,000.

Name: 10. To more efficiently manage its inventory, Treynor Corporation main
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Description: 10. 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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10. 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—26,000 units; cost $13.70 each.
Feb.	12	Purchased 76,000 units for $14.00 each.
Apr.	30	Sold 50,000 units for $21.50 each.
Jul.	22	Purchased 56,000 units for $14.30 each.
Sep.	9	Sold 76,000 units for $21.50 each.
Nov.	17	Purchased 46,000 units for $14.70 each.
Dec.	31	Inventory on hand—78,000 units.

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 $13.20).
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 $13,000.

Required 2
Required 3
Required 4
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. (
Cost of Goods Available for Sale
Cost of Goods Sold - April 30
Cost of Goods Sold - September 9
Inventory Balance
Cost of
FO:
# of
units
sold
Total Cost of # of units
in ending
# of
Cost per
Goods
Available for
Sale
Cost per
unit
Cost of
Goods Sold
# of units Cost per
sold
Cost of
Goods Sold
Cost per
unit
Ending
Inventory
units
unit
unit
Goods Sold
inventory
ry
26,000 $ 13.70 $ 356,200
$
13.70
$
13.70 $
$
13.70 $
12
76,000
14.00
1,064,000
14.00
14.00
14.00
56,000
14.30
800,800
14.30
14.30
14.30
·17
46,000
14.70
676,200
14.70
14.70
14.70
204,000
$ 2,897,200
$
$
0 $
$
< Required 1
Required 2 >

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 26,000 units with a cost of $13.20).
Ending Inventory - Periodic LIFO
# of units
in ending
inventory
Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO
Cost of Goods
LIFO
Cost per Available for
unit
Cost per
# of units Cost per
sold
Cost of
Ending
Inventory
# of units
unit
Goods Sold
unit
Sale
Beginning Inventory
26,000 $ 13.20 $
343.200
$
13.20 $
$
13.20
Purchases:
76,000 $ 14.00
56,000 $ 14.30
46,000 $ 14.70
Feb 12
1,064,000
$
14.00
$
14.00
Jul 22
800,800
$
14.30
$
14.30
Nov 17
676,200
$
14.70
$
14.70
Total
204,000
$ 2,884,200
$
$
< Required 1
Required 3 >

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