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

Jan.1Inventory on hand94,000 units; cost $4.00 each.

Feb.14Purchased 106,000 units for $5.00 each.

Mar.5Sold 164,000 units for $14.00 each.

Aug.27Purchased 64,000 units for $6.00 each.

Sep.12Sold 74,000 units for $14.00 each.

Dec.31Inventory on hand26,000 units.

Required:

1.Determine the amount Tipton would calculate internally for ending inventory and cost of goods sold using average cost under a perpetual inventory system.

2.Determine the amount Tipton would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodic inventory system.

3.Determine the amount Tipton 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 $9,400.