Question

Homework i Saved Help Save & Exit Check m The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2019 Date 1/1 1/24 2/22 3/7 4/10 6/11 9/28 12/4 Transaction Beginning inventory Purchase Sale Purchase Purchase Sale Purchase Sale Number Unit Total of Units Cost Cost 159 $32 $4,880 70 32 2,240 (100) 90 353,150 140 375, 180 (109) 36 1,800 (180) 50 Required: a. Assume that Kuffel Co. uses a periodic inventory system. Calculate cost of goods sold and ending inventory under FIFO and LIFO FIFO LIFO Cost of goods sold Ending inventory

Answer 1

Units in Ending Inventory - Opening Inventory & units purchased during the year - Units sold during the Year 150 + (70+90+140+50)-(loot 100 + 100) - isot 350-300 I 200 units se o to Liro Method - Cart of Inventory at the end a $4,800 so x32 (earlient caut) 50 X 32 Next carbat) 1,600 $6, you D) Cart of Goods Sold 50 x 36 (Recent laut) = 140X37 go x35 20x32 $1,800 5,180 3,150 640 $10,770

fifo Method Cost of Ending Inventory 50x36 (Mart Reeentrat) 940x37 $1800 3180 10X35 350 $7,330 Cost of Goods sold ez I farlient conti- ISO x 32 70 X 32 808 35 $4,800 2240 2,800 $9,840

Perpetual reventory info Balance Date Purchases . Salu 11150 1132 Balans 150X3224,800 1124 70x32=2240 150X32 z 4,800 70x322 2240 - 2122 70x3 222240 Box322 3,840 30x322960 317 90x3523150 120x322 3840 gox352 315o uho 140X3725180 120X322 3840 90x3523150 140X37=5180 100x 3723700 120x322 3840 90x352 3150 40x37 Sox 3621800 +208322 3840 90x3S 3150 400372 1480 Sox362 1800 SOX362 1800 120x32 = 3840 4083721480 800352 2800 108352350 $6,640 Cost of Goods sold $10,530 Cost of Closing Inventory $6640 $ 10,530

FIPO I Date Purchases Sales Balone 1 Balance 150X32-4,800 4124_ 700323 2240 150x322 34,800 70x32= 2,240 2122 Joox 322 3200 sox32 z 1600 70x32= 2240 317 90x35=3150 S0x32= 1600 70x32² 2240 90x352 3150 4110 140X3755180 So.x32 = 1600 70832 = 2240 90x35 3150 140x375180 Sox32=1600 20x32 z 640 GU S0x32=1600 90x3S = 3150 140x37 & 5180 9122 Sox 3621800 20.832= 640 goras ? 3150 140x37 28180 sox36 z 1800 20x32= 640 108352 350 80X35 22800 140x3 7=5180 Sox3.6 & 1800 $98.yo $7330 12/4

Cost of Inventory =$7,330 Cost of Goods Sold= $9,840 (c )True, the reason is that the LIFO periodic system does not take into account the exact dates involved but LIFO perpetual does.