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 $ 30 $ 4,500 1/24 Purchase 70 33 2,310 2/22 Sale (100 ) - - 3/7 Purchase 90 40 3,600 4/10 Purchase 140 36 5,040 6/11 Sale (100 ) - - 9/28 Purchase 50 37 1,850 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. c. LIFO results are different for parts a and b as timing of the application of LIFO rules is relevant. multiple choice True False
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 $ 30 $ 4,500 1/24 Purchase 70 33 2,310 2/22 Sale (100 ) - - 3/7 Purchase 90 40 3,600 4/10 Purchase 140 36 5,040 6/11 Sale (100 ) - - 9/28 Purchase 50 37 1,850 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. c. LIFO results are different for parts a and b as timing of the application of LIFO rules is relevant. multiple choice True False
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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 | $ | 30 | $ | 4,500 | |
| 1/24 | Purchase | 70 | 33 | 2,310 | |||
| 2/22 | Sale | (100 | ) | - | - | ||
| 3/7 | Purchase | 90 | 40 | 3,600 | |||
| 4/10 | Purchase | 140 | 36 | 5,040 | |||
| 6/11 | Sale | (100 | ) | - | - | ||
| 9/28 | Purchase | 50 | 37 | 1,850 | |||
| 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.
c. LIFO results are different for parts a and b as timing of the application of LIFO rules is relevant.
multiple choice
-
True
-
False
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