The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2019: Number of Units Unit Cost $ 32 34 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 Cost of goods sold Ending inventory 150 70 (100) 90 FIFO 140 (100) 50 (100) 36 37 LIFO 38 Total Cost $ 4,800 2,380 Required: a. Assume that Kuffel Co. uses a periodic inventory system. Calculate cost of goods sold and ending inventory under FIFO and LIFO. 3,240 5,180 1,900
The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2019: Number of Units Unit Cost $ 32 34 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 Cost of goods sold Ending inventory 150 70 (100) 90 FIFO 140 (100) 50 (100) 36 37 LIFO 38 Total Cost $ 4,800 2,380 Required: a. Assume that Kuffel Co. uses a periodic inventory system. Calculate cost of goods sold and ending inventory under FIFO and LIFO. 3,240 5,180 1,900
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:b. Assume that Kuffel Co. uses a perpetual inventory system. Calculate cost of goods sold and ending inventory under FIFO and LIFO.
Cost of goods sold
Ending inventory
FIFO
O True
False
LIFO
c. LIFO results are different for parts a and b as timing of the application of LIFO rules is relevant.
Transcribed Image Text:The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2019:
Unit
Cost
$32
34
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
Cost of goods sold
Ending inventory
Number
of Units
FIFO
150
70
(100)
90
140
(100)
50
(100)
36
37
LIFO
38
Total
Cost
Required:
a. Assume that Kuffel Co. uses a periodic inventory system. Calculate cost of goods sold and ending inventory under FIFO and LIFO.
$ 4,800
2,380
3,240
5,180
1,900
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Step 1: Define LIFO and FIFO
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VIEWStep 3: Calculation of Cost of goods sold and ending inventory using LIFO periodic method
VIEWStep 4: Calculation of cost of goods sold and ending inventory using perpectual system
VIEWStep 5: Calculation of cost of goods sold and ending inventory using LIFO Method using perpectual system
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