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   $ 33 $ 4,950 1/24 Purchase 70     31   2,170 2/22 Sale (100 )   -   - 3/7 Purchase 90     40   3,600 4/10 Purchase 140     39   5,460 6/11 Sale (100 )   -   - 9/28 Purchase 50     35   1,750 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

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.