Question

The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2019:

The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2019: Unit Cost $ 30 32 Total Cost $ 4,500 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) 38 37 - 36 3,420 5, 180 1,800 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

Answer 1

a) Calculate following : Periodic Method

	FIFO	LIFO
Cost of goods sold	4500+2240+80*38 = 9780	1800+5180+3420+20*32 = 11040
Ending inventory	17140-9780 = 7360	17140-11040 = 6100

b) Calculate following : Perpetual Method

	FIFO	LIFO
Cost of goods sold	4500+2240+80*38 = 9780	2240+30*30+140*37+50*36+10*38 = 10500
Ending inventory	17140-9780 = 7360	17140-10500 = 6640