The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2022:

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.

Transcribed Image Text:

Date 1/1 1/24 2/22 3/7 4/10 6/11 9/28 12/4 Transaction Beginning inventory.. Purchase.... Sale...... Purchase Purchase Sale..... Purchase Sale..... Number of Units 300 140 (200) 180 280 (200) 100 (200) Unit Cost $90 99 - 105 108 |=| 114 Total Cost $27,000 13,860 18,900 30,240 11,400