Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Telnex Corporation maintains its internal inventory records using first - in , first - out ( FIFO ) under a perpetual inventory system. The following

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 1Beginning inventory20,000 units. February 12Purchased 70,000 units for $12.50 each. April 30Sold 50,000 units for $20.00 each.July 22Purchased 50,000 units for $12.80 each.September 9Sold 70,000 units for $20.00 each.November 17Purchased 40,000 units for $13.20 each.December 31Ending inventory60,000 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 20,000 units with a cost of $12.20 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 20,000 units with a cost of $11.70 each.3.Determine the amount Telnex would report for its LIFO reserve at the end of the year. To more efficiently manage its inventory,  

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To solve this problem we need to follow the steps for both FIFO under a perpetual inventory system a... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: kieso, weygandt and warfield.

14th Edition

9780470587232, 470587288, 470587237, 978-0470587287

More Books

Students also viewed these Accounting questions

Question

give a definition of quantitative job demands;

Answered: 1 week ago

Question

(h) Calculate the number of observations that need to be taken.

Answered: 1 week ago

Question

(i) Review the above decisions. Revise, if necessary.

Answered: 1 week ago