To more efficiently manage its inventory, Treynor Corporation maintains its internal inventory records using first-in, first-out...
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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 $15.10 each. Dec. 31 Inventory on hand-90,000 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 30,000 units with a cost of $13.60). 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 $15,000. Required 1 Required 2 Required 3 Required 4 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. (F places.) Cost of Goods Available for Sale Cost of Goods Sold - April 30 Cost of Goods Sold - September 9 Inventory Balance Perpetual FIFO: Cost of # of units Cost per unit Goods Available for Sale # of units Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold Total Cost of Goods Sold sold # of units in ending inventory Cost per unit Ending Inventory Beg. Inventory 30,000 $ 14.10 $ 423,000 $ 14.10 $ 14.10 $ 14.10 Purchases: February 12 July 22 80,000 14.40 1,152,000 14.40 60,000 14.70 882,000 14.70 November 17 50,000 15.10 755,000 15.10 14.40 14.70 15.10 14.40 14.70 15.10 Total 220,000 $ 3,212,000 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 30,000 units with a cost of $13.60). Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Ending Inventory - Periodic LIFO LIFO # of units Cost per unit Cost of Goods Available for # of units Cost per sold unit Cost of Goods Sold Sale # of units in ending inventory Cost per unit Ending Inventory 30,000 $ 13.60 408,000 $ 13.60 $ 13.60 Beginning Inventory Purchases: Feb 12 80,000 $ 14.40 1,152,000 $ 14.40 Jul 22 60,000 $ 14.70 882,000 $ 14.70 Nov 17 50,000 $ 15.10 755,000 $ 15.10 Total 220,000 $ 3,197,000 < Required 1 Required 3 > $ 14.40 EA $ 14.70 EA 15.10 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the amount Treynor would report for its LIFO reserve at the end of the year. LIFO Reserve < Required 2 Required 4 > 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 $15.10 each. Dec. 31 Inventory on hand-90,000 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 30,000 units with a cost of $13.60). 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 $15,000. Required 1 Required 2 Required 3 Required 4 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. (F places.) Cost of Goods Available for Sale Cost of Goods Sold - April 30 Cost of Goods Sold - September 9 Inventory Balance Perpetual FIFO: Cost of # of units Cost per unit Goods Available for Sale # of units Cost per unit Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold Total Cost of Goods Sold sold # of units in ending inventory Cost per unit Ending Inventory Beg. Inventory 30,000 $ 14.10 $ 423,000 $ 14.10 $ 14.10 $ 14.10 Purchases: February 12 July 22 80,000 14.40 1,152,000 14.40 60,000 14.70 882,000 14.70 November 17 50,000 15.10 755,000 15.10 14.40 14.70 15.10 14.40 14.70 15.10 Total 220,000 $ 3,212,000 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 30,000 units with a cost of $13.60). Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Ending Inventory - Periodic LIFO LIFO # of units Cost per unit Cost of Goods Available for # of units Cost per sold unit Cost of Goods Sold Sale # of units in ending inventory Cost per unit Ending Inventory 30,000 $ 13.60 408,000 $ 13.60 $ 13.60 Beginning Inventory Purchases: Feb 12 80,000 $ 14.40 1,152,000 $ 14.40 Jul 22 60,000 $ 14.70 882,000 $ 14.70 Nov 17 50,000 $ 15.10 755,000 $ 15.10 Total 220,000 $ 3,197,000 < Required 1 Required 3 > $ 14.40 EA $ 14.70 EA 15.10 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the amount Treynor would report for its LIFO reserve at the end of the year. LIFO Reserve < Required 2 Required 4 >
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1 FIFO perpetual inventory Beginning inventory 30000 units at 1410 423000 Feb purchase 80... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
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