What are the ending inventory, cost of sales, and gross profit amounts using the perpetual system and the LIFO method?

If GSI (the company in Example 9-2) had used a perpetual inventory system, the timing of purchases and sales would affect the amounts of cost of sales and inventory. Following is a record of the purchases, sales, and quantity of inventory on hand after the transaction in 2009.

Date

Purchased

Sold

Inventory
on Hand

5 January

100,000 kg at 110 yuan/kg

100,000 kg

1 February

80,000 kg at 240 yuan/kg

20,000 kg

8 March

200,000 kg at 100 yuan/kg

220,000 kg

6 April

100,000 kg at 240 yuan/kg

120,000 kg

23 May

60,000 kg at 240 yuan/kg

60,000 kg

7 July

40,000 kg at 240 yuan/kg

20,000 kg

2 August

300,000 kg at 90 yuan/kg

320,000 kg

5 September

70,000 kg at 240 yuan/kg

250,000 kg

17 November

90,000 kg at 240 yuan/kg

160,000 kg

8 December

80,000 kg at 240 yuan/kg

80,000 kg

Total goods available for
sale = 58,000,000 yuan

Total sales = 124,800,000 yuan

The amounts for total goods available for sale and sales are the same under either the perpetual or periodic system in this first year of operation. The carrying amount of the ending inventory, however, may differ because the perpetual system will apply LIFO continuously throughout the year. Under the periodic system, it was assumed that the ending inventory was composed of 80,000 units of the oldest inventory, which cost 110 yuan/kg.

What are the ending inventory, cost of sales, and gross profit amounts using the perpetual system and the LIFO method? How do these compare with the amounts using the periodic system and the LIFO method?

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