Keefer, Inc. began business on January 1, 2010. Information on its inventory purchases and sales during 2010 and 2011 follow:
Inventory Purchases__________________
Date Units Cost per Unit Total
January 1, 2010 85 $25 $ 2,125 March 15, 2010 100 27 2,700 May 15, 2010 90 28 2,520 August 1, 2010 100 30 3,000 September 3, 2010 125 31 3,875 December 5, 2010 50 32 1,600 Total purchases - 2010 550 $15,820
February 20, 2011 150 $31 4,650 March 29, 2011 100 30 3,000 July 1, 2011 100 29 2,900 August 20, 2011 100 28 2,800 November 3, 2011 80 27 2,160 Total purchases - 2011 530 $15,510
Inventory Sales____________
________________Units Price per Unit Total______ March 18, 2010 65 $50 $ 3250 August 15, 2010 200 52 10,400 October 6, 2010 175 53 9,275 Total sales - 2010 440 22,925
February 12, 2011 100 $ 53 5,300 June 2, 2011 200 52 10,400 September 30, 2011 210 50 10,500 Total sale - 2011 510 26,200
Q1. Calculate ending inventory, cost of goods sold, and gross margin for 2010 and 2011 under the periodic FIFO inventory valuation method.
Q2. Calculate ending inventory, cost of goods sold, and gross margin for 2010 and 2011 under the periodic LIFO inventory valuation method.
Q3. What is the difference in reported results under FIFO versus LIFO for each year?