Question

The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2016:

   

Date	Transaction	Number of Units		Unit Cost		Total Cost
1/1	Beginning inventory	150		$	32	$	4,800
1/24	Purchase	70			33		2,310
2/22	Sale	(100	)		-		-
3/7	Purchase	90			35		3,150
4/10	Purchase	140			38		5,320
6/11	Sale	(100	)		-		-
9/28	Purchase	50			38		1,900
12/4	Sale	(100	)		-		-

Required:

a. Assume that Kuffel Co. uses a periodic inventory system. Calculate cost of goods sold and ending inventory under FIFO and LIFO.

b. Assume that Kuffel Co. uses a perpetual inventory system. Calculate cost of goods sold and ending inventory under FIFO and LIFO.

Answer 1

	Unit	Unit Cost	Total Cost
Beginning inventory	150	32	4800
Purchase 1	70	33	2310
Purchase 2	90	35	3150
Purchase 3	140	38	5320
Purchase 4	50	38	1900
Total	500		17480

a) Calculate cost of goods sold and ending inventory : Perpetual method

	FIFO	LIFO
Cost of goods sold	17480-7570 = 9910	17480-6450 = 11030
Ending inventory	1900+5320+350 = 7570	4800+50*33 = 6450

b) Calculate cost of goods sold and ending inventory : Periodic method

	FIFO	LIFO
Cost of goods sold	17480-7570 = 9910	17480-6640 = 10840
Ending inventory	1900+5320+350 = 7570	120*32+80*35 = 6640