The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2019: Date Transaction Number of Units Unit Cost Total Cost 1/1 Beginning inventory 150 $ 34 $ 5,100 1/24 Purchase 70 31 2,170 2/22 Sale (100 ) - - 3/7 Purchase 90 36 3,240 4/10 Purchase 140 38 5,320 6/11 Sale (100 ) - - 9/28 Purchase 50 39 1,950 12/4 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.
The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2019:
| Date | Transaction | Number of Units |
Unit Cost |
Total Cost |
||||
| 1/1 | Beginning inventory | 150 | $ | 34 | $ | 5,100 | ||
| 1/24 | Purchase | 70 | 31 | 2,170 | ||||
| 2/22 | Sale | (100 | ) | - | - | |||
| 3/7 | Purchase | 90 | 36 | 3,240 | ||||
| 4/10 | Purchase | 140 | 38 | 5,320 | ||||
| 6/11 | Sale | (100 | ) | - | - | |||
| 9/28 | Purchase | 50 | 39 | 1,950 | ||||
| 12/4 | 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.
Periodic Inventory system is a system of maintaining inventories at periodic level. Whereas in Perpetual Inventory system inventories is not maintained at any periodic intervals rather it is maintained on daily basis.
Closing Inventory and COGS in FIFO method will remain same under both Periodic and Perpetual Inventory system.
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