2. Question: Mower-Blower Sales Co. started business on January


Question Description:

20

Question:
Mower-Blower Sales Co. started business on January 20, 2013. Products sold were snow blowers and lawn mowers. Each product sold for $350. Purchases during 2013 were as follows:

Blowers Mowers
January 21 15 @ $ 198
February 3 50 @ 191
February 28 28 @ 200
March 13 19 @ 193
April 6 19 @ $ 202
May 22 32 @ 210
June 3 39 @ 224
June 20 65 @ 228
August 15 20 @ 210
September 20 19 @ 202
November 7 15 @ 198
In inventory at December 31, 2013, were 12 blowers and 22 mowers. Assume the company uses a periodic inventory system.
Required 1:
(a)
Compute ending inventory valuation at December 31, 2013 under the FIFO and LIFO cost-flow assumptions. (Hint: Compute ending inventory under each method, and then compare results.)

Answer

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