Calculate cost of goods sold and ending inventory under fifo

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Reference no: EM13890986

Cost flow assumptions-FIFO and LIFO using periodic and perpetual systems The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2013:

Date

Transaction

Number of Units

Unit Cost

Total Cost

1-Jan

Beginning  inventory

$150

$30

$4,500

24-Jan

Purchase

70

33

2,310

22-Feb

Sale

-100

-

-

7-Mar

Purchase

$90

35

3,150

10-Apr

Purchase

140

36

5,040

11-Jun

Sale

-100

-

-

28-Sep

Purchase

50

38

1,900

4-Dec

Sale

-100

-

-

Required:

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

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

c. Explain why the FIFO results for cost of goods sold and ending inventory are the same in your answers to parts a and b, but the LIFO results are different.

Reference no: EM13890986

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