To more efficiently manage its inventory, 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 1 Beginning inventory–27,000 units. February 12 Purchased 77,000 units for 13.20 each. April 30 Sold 50,000 units for20.70 each. July 22 Purchased 57,000 units for 13.50 each. September 9 Sold 77,000 units for20.70 each. November 17 Purchased 47,000 units for 13.90 each. December 31 Ending inventory–81,000 units. 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 27,000 units with a cost of12.90 each. 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 27,000 units with a cost of 12.40 each. Determine the amount Telnex would report for its LIFO reserve at the end of the year. Record the year-end adjusting entry for the LIFO reserve. The balance of the LIFO reserve at the beginning of the year was13,500.
