PROBLEMS / DISCUSSION QUESTIONS P10-1 Calculating amounts and ratios under FIFO and LIFO (LO 10-2, LO 10-4) Keefer, Inc., began business on January 1, 20X1. Information on its inventory purchases and sales during 20X1 and 20X2 follow: Required: January 1, 20X1 March 15, 20X1 May 15, 20X1 August 1, 20X1 September 3, 20X1 December 5, 20X1 Total purchases-20X1 February 20, 20X2 March 29, 20X2 July 1, 20X2 August 20, 20X2 November 3, 20X2 Total purchases-20X2 March 18, 20X1 August 15, 20X1 October 6, 20X1 Total sales-20X1 February 12, 20X2 June 2, 20X2 September 30, 20X2 Total sales-20X2 Inventory Purchases Date Units 85 100 90 100 125 50 Cost per Unit $25 $ 2,125 27 2,700 28 2,520 30 3,000 31 3,875 32 Total 550 1,600 $15,820 150 $31 $ 4,650 100 30 3,000 100 29 2,900 100 28 2,800 80 27 2,160 530 $15,510 123 Calculate ending inventory, cost of goods sold, and gross margin for 20X1 and 20X2 under the periodic FIFO inventory valuation method. Calculate ending inventory, cost of goods sold, and gross margin for 20X1 and 20X2 under the periodic LIFO inventory valuation method. 3. Discuss the difference in reported results under FIFO versus LIFO for each year. 2. Inventory Sales Price per Unit Total $50 52 $3,250 10,400 53 Units 65 200 175 440 100 $53 200 52 210 50 510 9,275 $22,925 $ 5,300 10,400 10,500 $26,200 page 10-61