Cost flow assumptions-FIFO and LIFO using periodic and perpetual systems The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2013:
|
Date
|
Transaction
|
Number of Units
|
Unit Cost
|
Total Cost
|
|
1-Jan
|
Beginning inventory
|
$150
|
$30
|
$4,500
|
|
24-Jan
|
Purchase
|
70
|
33
|
2,310
|
|
22-Feb
|
Sale
|
-100
|
-
|
-
|
|
7-Mar
|
Purchase
|
$90
|
35
|
3,150
|
|
10-Apr
|
Purchase
|
140
|
36
|
5,040
|
|
11-Jun
|
Sale
|
-100
|
-
|
-
|
|
28-Sep
|
Purchase
|
50
|
38
|
1,900
|
|
4-Dec
|
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. Explain why the FIFO results for cost of goods sold and ending inventory are the same in your answers to parts a and b, but the LIFO results are different.