Question

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

The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2016: Unit Cost $ 29 32 Total Cost $ 4,350 2,240 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 of Units 150 70 (100) 90 140 (100) 50 (100) 35 40 3,150 5,600 35 1,750 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 b. Assume that Kuffel Co. uses a perpetual inventory system. Calculate cost of goods sold and ending inventory under FIFO and LIFO. FIFO LIFO Cost of goods sold Ending inventory c. LIFO results are different for parts a and b as timing of the application of LIFO rules is relevant. True False

Answer 1

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
Beg. Balance	150	29	4350	150	29	4350
Purchasse
24-Jan	70	32	2240	70	32	2240
07-Mar	90	35	3150	80	35	2800	10	35	350
10-Apr	140	40	5600				140	40	5600
28-Sep	50	35	1750				50	35	1750
TOTAL	500		17090	300		9390	200		7700
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
Beg. Balance	150	29	4350				150	29	4350
Purchasse
24-Jan	70	32	2240	20	32	640	50	32	1600
07-Mar	90	35	3150	90	35	3150
10-Apr	140	40	5600	140	40	5600
28-Sep	50	35	1750	50	35	1750
TOTAL	500		17090	300		11140	200		5950
			FIFO	LIFO
Cost of goods sold		9390	11140
Ending inventory		7700	5950
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
01-Jan							150	29	4350
24-Jan	70	32	2240				150	29	4350
							70	32	2240
22-Feb				100	29	2900	50	29	1450
							70	32	2240
07-Mar	90	35	3150				50	29	1450
							70	32	2240
							90	35	3150
10-Apr	140	40	5600				50	29	1450
							70	32	2240
							90	35	3150
							140	40	5600
11-Jun				50	29	1450	20	32	640
				50	32	1600	90	35	3150
							140	40	5600
28-Sep	50	35	1750				20	32	640
							90	35	3150
							140	40	5600
							50	35	1750
04-Dec				20	32	640	10	35	350
				80	35	2800	140	40	5600
							50	35	1750
TOTAL	350		12740	300		9390	200		7700
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
01-Jan							150	29	4350
24-Jan	70	32	2240				150	29	4350
							70	32	2240
22-Feb				70	32	2240
				30	29	870	120	29	3480
07-Mar	90	35	3150				120	29	3480
							90	35	3150
10-Apr	140	40	5600				120	29	3480
							90	35	3150
							140	40	5600
11-Jun				100	40	4000	120	29	3480
							90	35	3150
							40	40	1600
28-Sep	50	35	1750				120	29	3480
							90	35	3150
							40	40	1600
							50	35	1750
04-Dec				50	35	1750
				40	40	1600	120	29	3480
				10	35	350	80	35	2800
TOTAL	350		12740	300		10810	200		6280
			FIFO	LIFO
Cost of goods sold		9390	10810
Ending inventory		7700	6280
Req c.
TRUE.