Keefer, Inc., began business on January 1, 20X1. Information on its inventory purchases and sales during 20X1 and 20X2 follow:

Required:

1. Calculate ending inventory, cost of goods sold, and gross margin for 20X1 and 20X2 under the periodic FIFO inventory valuation method.

2. 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.

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Inventory Purchases Date Units Cost per Unit Total $25 $ 2,125 January 1, 20X1 March 15, 20X1 85 100 27 2,700 2,520 May 15, 20X1 August 1, 20X1 September 3, 20X1 December 5, 20X1 90 28 100 30 3,000 3,875 1,600 125 31 50 32 550 $15,820 Total purchases-20X1 $31 February 20, 20X2 March 29, 20X2 July 1, 20X2 August 20, 20X2 November 3, 20X2 Total purchases-20X2 150 $ 4,650 100 30 3,000 2,900 100 29 100 28 2,800 2,160 80 27 530 $15,5 10 Inventory Sales Units Price per Unit Total March 18, 20X1 65 $50 $ 3,250 August 15, 20X1 October 6, 20X1 200 52 10,400 9,275 175 53 Total sales-20X1 440 $22,925 February 12, 20X2 June 2, 20X2 $ 5,300 10,400 10,500 100 $53 200 52 September 30, 20X2 210 50 310 $26,200 Total sales-20X2