Question

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: Mowers Blowers 18 @ $ 195 44 @ 191 36@ 188 22@ 190 January 21 February 3 February 28 March 13 April 6 May 22 June 3 June 20 August 15 September 20 November 7 18 @ $200 37 @ 219 41 @ 217 59 @ 227 19 @ 219 18 @ 200 24@ 195 The December 31, 2019, inventory included 7 blowers and 24 mowers. Assume the company uses a periodic inventory system. Required: a-1. Compute ending inventory valuation at December 31, 2019, under the FIFO and LIFO cost flow assumptions. FIFO LIFO Blowers $ 1,365 $ 1,365 Mowers

Please show work.

Answer 1

Units Total Cost per Unit $ $ Requirement A | FIFO - Blowers Particulars Beginning Inventory Purchases - January 21 - February 3 - February 28 - March 13 - November 7 Total Purchases 18 $ 44 $ 36 $ 22 $ 24 $ 144 195 $ 3,510 191 $ 8,404 188 $ 6,768 190 $ 4,180 195 $ 4,680 $ 27,542 Goods available for Sale 144 $ 27,542 - Cost of goods sold - Units from Beginning Inventory - Units from January 21 - Units from February 3 - Units from February 28 - Units from March 13 - Units from November 7 Total Cost of good sold 18 $ 44 $ 36 $ 22 $ 17 $ 137 195 $ 3,510 191 $ 8,404 188 $ 6,768 190 $ 4,180 195 $ 3,315 $ 26,177 Ending Inventory 7 $ 1,365

Requirement B | LIFO - Blowers Particulars Units Cost per Unit Total $ Beginning Inventory Purchases - January 21 - February 3 - February 28 - March 13 - November 7 Total Purchases 18 $ 44 $ 36 $ 22 $ 24 $ 144 195 $ 191 $ 188 $ 190 $ 195 $ $ 3,510 8,404 6,768 4,180 4,680 27,542 Goods available for Sale 144 $ 27,542 Cost of goods sold - Units from Beginning Inventory - Units from January 21 - Units from February 3 -Units from February 28 - Units from March 13 - Units from November 7 Total Cost of good sold 11 $ 44 $ 36 $ 22 $ 24 $ 137 195 $ 2,145 191 8,404 188 6,768 190 $ 4,180 195 $ 4,680 $ 26,177 Ending Inventory 7 $ 1,365

Units Cost per Unit Total LA Requirement C | FIFO - Mowers Particulars Beginning Inventory Purchases - April 6 - May 22 - June 3 - June 20 - August 15 - September 20 Total Purchases 18 $ 37 $ 41 59 $ 19 $ 18 $ 192 200 $ 219 $ 217 $ 227 $ 219 $ 200 $ $ 3,600 8,103 8,897 13,393 4,161 3,600 41,754 Goods available for Sale 192 $ 41,754 $ Cost of goods sold - Units from Beginning Inventory - Units from April 6 - Units from May 22 - Units from June 3 -Units from June 20 - Units from August 15 - Units from September 20 Total Cost of good sold 18 $ 37 $ 41 $ 59 $ 13 $ 200 $ 3,600 219 $ 8,103 217 $ 8,897 227 $ 13,393 219 $ 2,847 200 $ $ 36,840 168 Ending Inventory 24 $ 4,914

Units Cost per Unit Total Requirement D | FIFO - Mowers Particulars Beginning Inventory Purchases - April 6 - May 22 - June 3 - June 20 - August 15 - September 20 Total Purchases 18 $ 37 $ 41 $ 59 $ 19 $ 18 $ 192 200 $ 219 $ 217 $ 227 $ 219 $ 200 $ $ 3,600 8,103 8,897 13,393 4,161 3,600 41,754 Goods available for Sale 192 $ 41,754 - Cost of goods sold - Units from Beginning Inventory - Units from April 6 - Units from May 22 - Units from June 3 - Units from June 20 -Units from August 15 - Units from September 20 Total Cost of good sold 31 $ 41 $ 59 $ 19 $ 18 $ 168 200 $ 219 $ 6,789 217 $ 8,897 227 $ 13,393 219 $ 4,161 200 $ 3,600 $ 36,840 Ending Inventory 24 $ 4,914