Mogul Processing maintains its internal inventory records using average cost under a perpetual inventory system. The following information relates to its inventory during the year:

Required:
1. Determine the amount Mogul would calculate internally for ending inventory and cost of goods sold using average cost under a perpetual inventory system. Beginning inventory under average cost was 80,000 units with a average cost of $4.25 each.
2. Determine the amount Mogul 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 80,000 units with a cost of $4.00 each.
3. Determine the amount Mogul 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 $20,000.

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Jan. 1 Feb. 14 Mar. 5 Aug. 27 Sep. 12 Nov. 15 Dec. 31 Beginning inventory-80,000 units. Purchased 120,000 units for $4.50 each. Sold 150,000 units for $14.00 each. Purchased 50,000 units for $4.80 each. Sold 60,000 units for $14.00 each. Purchased 70,000 units for $4.90 each. Ending inventory 110,000 units.