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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 28,000 units with a cost of $13.40). 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 $18,000.

Sagot :

Answer:

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

FIFO 1.226.400

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 28,000 units with a cost of $13.40

LIFO 1.204.000

Explanation:

Jan.  1  Inventory on hand—28,000 units; cost $13.90 each.

Feb.  12  Purchased 78,000 units for $14.20 each.

Apr.  30  Sold 50,000 units for $21.70 each.

Jul.  22  Purchased 58,000 units for $14.50 each.

Sep. 9  Sold 78,000 units for $21.70 each.

Nov. 17  Purchased 48,000 units for $14.90 each.

Dec. 31  Inventory on hand—84,000 units.

FIFO    

   

Begginnin inventory 28000 13.4 375200

Purchased 78000 14.2 1107600

   

Sold 50000  

Sold 28000 13.4 375200

Sold 22000 14.2 312400

   

Inventory 56000 14.2 795200

Purchased 58000 14.5 841000

   

Sold 78000  

Sold 20000 14.2 284000

Sold 58000 14.5 841000

   

Inventory 36000 14.2 511200

Purchased 48000 14.9 715200

   

Ending Inventory 84000  

   

LIFO    

   

Begginnin inventory 28000 13.4 375200

Purchased 78000 14.2 1107600

   

Sold 50000  

Sold 50000 14.2 710000

   

Inventory 28000 13.4  

Inventory 28000 14.2 397600

Purchased 58000 14.5 841000

   

Sold 78000  

Sold 20000 14.2 284000

Sold 58000 14.5 841000

   

Inventory 28000 13.4 375200

Inventory 8000 14.2 113600

Purchased 48000 14.9 715200

   

Ending Inventory 84000  1204000

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