Question

2. Mower-Blower Sales Co. started business on January 20, 2019. Products sold were snow blowers and lawn mowers. Each product sold for $350. Purchases during 2019 were as follows: 2 points Mowers Blovers 188 $ 205 32 193 29 194 210 200 January 21 February February 20 March 13 April May 22 June 3 June 20 August 15 September 20 November 190 $213 400 216 449 222 554 225 176 216 194 213 221 205 The December 31, 2019, inventory included 12 blowers and 24 mowers. Assume the company uses a periodic inventory system. Required: 2-1. Compute ending inventory valuation at December 31, 2019, under the FIFO and UFO cost flow assumptions. FIFO LIFO Blowers Mowers

Answer 1

	FIFO		LIFO
Blowers	$                                           2,460		$    2,460
Mowers	$ 5,127		$ 5,127
Workings:
Blowers
Ending units	11
FIFO	12 units from November 7	=	12 X $205	=	$    2,460
LIFO	12 units from January 21	=	11 X $205	=	$    2,460
Mowers
Ending units	24
FIFO	5 units from August 15	=	5 X $216	=	$    1,080
	19 units from september 20	=	19 X $213	=	$ 4047
	Total				$ 5,127
LIFO	19 units from April 6	=	19 X $213	=	$ 4,047
	5 units from May 22	=	5 X $216	=	$    1,080
	Total				$ 5,127