The inventory records of Kuffel Co. reflected the following information for the

Question

The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2016 Number of Units Total Cost Unit Cost 34 40 Date Transaction 150 $ 33 $ 4,950 2,380 Beginning inventory Purchase Sale Purchase Purchase Sale Purchase Sale 70 (100) 90 140 (100) 50 (100) 1/24 2/22 4/10 9/28 3,600 5,460 39 37 1,850 12/4 Required a. Assume that Kuffel Co. uses a periodic inventory system. Calculate cost of goods sold and ending inventory under FIFO and LIFO FIFO LIFO Cost of goods sold Ending inventory b. Assume that Kuffel Co. uses a perpetual inventory system. Calculate cost of goods sold and ending inventory under FIFO and LIFO FIFO LIFO Cost of goods sold Ending inventory c. LIFO results are different for parts a and b as timing of the application of LIFO rules is relevant. True False

Explanation / Answer

Req 1. STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Beg. Inv. 150 33 4950 150 33 4950 Purchasse 24.01.18 70 34 2380 20 34 680 50 34 1700 07.03.18 90 40 3600 90 40 3600 10.04.18 140 39 5460 140 39 5460 28.09.18 50 37 1850 50 37 1850 TOTAL 500 18240 300 11590 200 6650 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Beg. Inv. 150 33 4950 150 33 4950 Purchasse 24.01.18 70 34 2380 70 34 2380 07.03.18 90 40 3600 80 40 3200 10 40 400 10.04.18 140 39 5460 140 39 5460 28.09.18 50 37 1850 50 37 1850 TOTAL 500 18240 300 10530 200 7710 FIFO LIFO COSt of goods sold 10530 11590 Ending inventory 7710 6650 Req 2. STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 150 33 4950 24-Jan 70 34 2380 150 33 4950 70 34 2380 22-Feb 100 33 3300 50 33 1650 70 34 2380 7-Mar 90 40 3600 50 33 1650 70 34 2380 90 40 3600 10-Apr 140 39 5460 50 33 1650 70 34 2380 90 40 3600 140 39 5460 11-Jun 50 33 1650 20 34 680 50 34 1700 90 40 3600 140 39 5460 28-Sep 50 37 1850 20 34 680 90 40 3600 140 39 5460 50 37 1850 4-Dec 20 34 680 10 40 400 80 40 3600 140 39 5460 50 37 1850 TOTAL 350 13290 300 10930 200 7710 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 150 33 4950 24-Jan 70 34 2380 150 33 4950 70 34 2380 22-Feb 70 34 2380 30 33 990 120 33 3960 7-Mar 90 40 3600 120 33 3960 90 40 3600 10-Apr 140 39 5460 120 33 3960 90 40 3600 140 39 5460 11-Jun 100 39 3900 120 33 3960 90 40 3600 40 39 1560 28-Sep 50 37 1850 120 33 3960 90 40 3600 40 39 1560 50 37 1850 4-Dec 50 37 1850 120 33 3960 40 39 1560 80 40 3200 10 40 400 TOTAL 350 13290 300 11080 200 7160 FIFO LIFO COGS 10930 11080 Ending inventory 7710 7160 Req c: Yes, the timing of application of LIFO rules is relevant.

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