The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2019: DateTransactionNumberof UnitsUnitCost TotalCost1/1Beginning inventory150 $34 $5,1001/24Purchase70 31 2,1702/22Sale(100) - -3/7Purchase90 36 3,2404/10Purchase140 38 5,3206/11Sale(100) - -9/28Purchase50 39 1,95012/4Sale(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.

Name: The inventory records of Kuffel Co. reflected the following informatio
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Description: The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2019: DateTransactionNumberof UnitsUnitCost TotalCost1/1Beginning inventory150 $34 $5,1001/24Purchase70 31 2,1702/22Sale(100) - -3/7Purchase90

Answered: The inventory records of Kuffel Co.…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 13RE: Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a...

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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		$	34	$	5,100
1/24	Purchase	70			31		2,170
2/22	Sale	(100	)		-		-
3/7	Purchase	90			36		3,240
4/10	Purchase	140			38		5,320
6/11	Sale	(100	)		-		-
9/28	Purchase	50			39		1,950
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.

Expert Solution

Step 1

Periodic Inventory system is a system of maintaining inventories at periodic level. Whereas in Perpetual Inventory system inventories is not maintained at any periodic intervals rather it is maintained on daily basis.

Closing Inventory and COGS in FIFO method will remain same under both Periodic and Perpetual Inventory system.

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