Question

help on A. Lifo and B. Lifo ending inventory

Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate compl The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2019: Unit Cost $ 33 34 Date 1/1 1/24 2/22 3/7 4/10 Total Cost $ 4,950 2,380 - Transaction Beginning inventory Purchase Sale Purchase Purchase Sale Purchase Sale Number of Units 150 70 (189) 90 140 (180) 50 (100) 38 39 3,420 5,460 6/11 9/28 12/4 39 1,950 Required: a. Assume that Kuffel Co. uses a periodic inventory system. Calculate cost of goods sold and ending inventory under FIFO and LIFO Answer is complete but not entirely correct. Cost of goods sold Ending inventory s FIFO 10,370 7.790 S s LIFO 11.121 7.000 x $ < Prev 4 of 4 !!! Next ch o BI ** a

Answer 1

A) Under Periodic Inventory System

	FIFO	LIFO
Cost of Goods Sold	10370	11510
Ending Inventory	7790	6650

Computations

Total Goods available for Sale

Date Transaction 1-Jan Beginning Inventory 24-Jan Purchase 7-Mar Purchase 10-Apr Purchase 28-Sep Purchase Units Unit Cost Total 150 33 4950 70 34 2380 90 38 3420 140 39 5460 50 39 1950 Total Goods available for Sale 18160

Cost of Goods Sold(FIFO)

Sale 100 100 33 3300 100 50 33 34 1650 1700 680 50 20 80 100 34 38 3040 Total 300 10370

Ending Inventory = Total Goods available for Sale - Cost of Goods Sold

                              = 18160 - 10370

                             = 7790 $

Units 10 Unit Cost Total 38 380 39 7410 7790 190

Cost of Goods Sold(LIFO)

Sale 100 100 90 39 39 3900 3510 100 10 380 38 38 100 80 20 34 3040 680 11510 Total 300

Ending Inventory = 18160 - 11510

                              = 6650 $

Units Unit Cost Total 150 33 4950 50 34 1700 6650

B) Under Perpectual Inventory System

	FIFO	LIFO
Cost of Goods Sold	10370	11160
Ending Inventory	7790	7000

Cost of Goods Sold(FIFO)

33 22-Feb Sale 11-Jun Sale 100 100 100 50 50 3300 1650 33 34 1700 680 4-Dec Sale 100 20 34 80 38 3040 10370 Total 300

Ending Inventory = 18160 - 10370

                               = 7790 $

Units 10 Unit Cost Total 38 380 39 7410 7790 190

Cost of Goods Sold(LIFO)

22-Feb Sale 100 70 34 2380 30 33 990 11-Jun Sale 39 100 100 100 90 3900 3510 4-Dec Sale 39 10 38 380 Total 11160

              Ending Inventory = 18160 - 11160

                                             = 7000 $

Units Unit Cost Total 80 38 3040 120 33 3960 7000