Calculate ending inventory, cost of goods sold, and gross margin for 2013 and 2014 under the perpetual FIFO inventory valuation method. Calculate ending inventory, cost of goods sold, and gross margin for 2013 and 2014 under the perpetual LIFO inventory valuation method. Discuss the difference in reported results under FIFO versus LIFO for each year. Keefer, Inc., began business on January 1, 2013. Information on its inventory purchases and sales during2013 and 2014 follow:DateJanuary 1, 2013March 15, 2013May 15, 2013August 1, 2013September 3, 2013December 5, 2013Total purchases 2013February 20, 2014March 29, 2014July 1, 2014August 20, 2014November 3, 2014Total purchases-2014March 18, 2013August 15, 2013October 6, 2013Total sales 2013February 12, 2014June 2, 2014September 30, 2014Total sales 2014Units85100901001255055015010010010080530Units65200175440100200210510Inventory PurchasesCost per Unit$252728303132$3130292827Inventory SalesPrice per Unit$505253$535250Total$ 2,1252,7002,5203,0003,8751,600$15,820$ 4,6503,0002,9002,8002,160$15,510Total$ 3,25010,4009,275$22,925$ 5,30010,40010,500$26,200

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Description: Calculate ending inventory, cost of goods sold, and gross margin for 2013 and 2014 under the perpetual FIFO inventory valuation method. Calculate ending inventory, cost of goods sold, and gross margin for 2013 and 2014 under the perpetual LIFO inve

In FIFO method,we assume that the inventory which came first will be sold first. In LIFO method,we…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Calculate ending inventory, cost of goods sold, and gross margin for 2013 and 2014 under the perpetual FIFO inventory valuation method.

Calculate ending inventory, cost of goods sold, and gross margin for 2013 and 2014 under

the perpetual LIFO inventory valuation method.

Discuss the difference in reported results under FIFO versus LIFO for each year.

Keefer, Inc., began business on January 1, 2013. Information on its inventory purchases and sales during
2013 and 2014 follow:
Date
January 1, 2013
March 15, 2013
May 15, 2013
August 1, 2013
September 3, 2013
December 5, 2013
Total purchases 2013
February 20, 2014
March 29, 2014
July 1, 2014
August 20, 2014
November 3, 2014
Total purchases-2014
March 18, 2013
August 15, 2013
October 6, 2013
Total sales 2013
February 12, 2014
June 2, 2014
September 30, 2014
Total sales 2014
Units
85
100
90
100
125
50
550
150
100
100
100
80
530
Units
65
200
175
440
100
200
210
510
Inventory Purchases
Cost per Unit
$25
27
28
30
31
32
$31
30
29
28
27
Inventory Sales
Price per Unit
$50
52
53
$53
52
50
Total
$ 2,125
2,700
2,520
3,000
3,875
1,600
$15,820
$ 4,650
3,000
2,900
2,800
2,160
$15,510
Total
$ 3,250
10,400
9,275
$22,925
$ 5,300
10,400
10,500
$26,200

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