Question

The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2019: Number of Units 150 70 (100) Unit Cost $33 Total Cost $ 4,950 2,380 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 90 3,510 5,320 140 (100) 50 (100) 1,800

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

Answer 1

	Cost of Goods Sold	Ending Inventory
FIFO	$10450	$7510
LIFO	$10880	$7080

(1) Perpetual FIFO :-

FIFO	Cost of Goods Available for Sale			Cost of Goods Sold-2/22			Cost of Goods Sold-6/11			Cost of Goods Sold-12/4			Inventory Balance
	# of units	Cost pu	Cost of Goods Available for Sale	# of units	Cost pu	Cost of Goods Sold	# of units	Cost pu	Cost of Goods Sold	# of units	Cost pu	Cost of Goods Sold	# of units	Cost pu	Ending Inventory
Beginning Inventory	150	$33	$4950	100	$33	$3300	50	$33	$1650
Purchases:-
1/24	70	$34	$2380				50	$34	$1700	20	$34	$680
3/7	90	$39	$3510							80	$39	$3120	10	$39	$390
4/10	140	$38	$5320										140	$38	$5320
9/28	50	$36	$1800										50	$36	$1800
Total	500		$17960	100		$3300	100		$3350	100		$3800	200		$7510

COGS =$ 3300 + $3350 + $3800 = $10450

(2) Perpetual LIFO :-

FIFO	Cost of Goods Available for Sale			Cost of Goods Sold-2/22			Cost of Goods Sold-6/11			Cost of Goods Sold-12/4			Inventory Balance
	# of units	Cost pu	Cost of Goods Available for Sale	# of units	Cost pu	Cost of Goods Sold	# of units	Cost pu	Cost of Goods Sold	# of units	Cost pu	Cost of Goods Sold	# of units	Cost pu	Ending Inventory
Beginning Inventory	150	$33	$4950	30	$33	$990							120	$33	$3960
Purchases:-
1/24	70	$34	$2380	70	$34	$2380
3/7	90	$39	$3510							10	$39	$390	80	$39	$3120
4/10	140	$38	$5320				100	$38	$3800	40	$38	$1520
9/28	50	$36	$1800							50	$36	$1800
Total	500		$17960	100		$3370	100		$3800	100		$3710	200		$7080

COGS = $3370 + $3800 + $3710 =