Mower-Blower Sales Co. started business on January 20, 2016. Products sold were snow blowers and lawn mowers. Each product sold for $1,400. Purchases during 2016 were as follows: Blowers Mowers January 21 20@$800 February 3 40 @780 February 28 30760 March 13 20760 April 6 20@$840 May 22 40860 June 3 June 20 August 15 September 20 40 @880 60920 20860 20840 November 7 20 @ 800 The December 31, 2016 inventory included 10 blowers and 25 mowers. Assume the company uses a periodic inventory system. Required: Compute ending inventory valuation at December 31, 2016 under: a) FIFO b) LIFO (Hint: Compute ending inventory under each method, and then compare results.)
Mower-Blower Sales Co. started business on January 20, 2016. Products sold were snow blowers and lawn mowers. Each product sold for $1,400. Purchases during 2016 were as follows: Blowers Mowers January 21 20@$800 February 3 40 @780 February 28 30760 March 13 20760 April 6 20@$840 May 22 40860 June 3 June 20 August 15 September 20 40 @880 60920 20860 20840 November 7 20 @ 800 The December 31, 2016 inventory included 10 blowers and 25 mowers. Assume the company uses a periodic inventory system. Required: Compute ending inventory valuation at December 31, 2016 under: a) FIFO b) LIFO (Hint: Compute ending inventory under each method, and then compare results.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mower-Blower Sales Co. started business on January 20, 2016.
Products sold were snow blowers and lawn mowers.
Each product sold for $1,400.
Purchases during 2016 were as follows:
Blowers
Mowers
January 21
20@$800
February 3
40 @780
February 28
30760
March 13
20760
April 6
20@$840
May 22
40860
June 3
June 20
August 15
September 20
40 @880
60920
20860
20840
November 7 20 @ 800
The December 31, 2016 inventory included 10 blowers and 25 mowers.
Assume the company uses a periodic inventory system.
Required:
Compute ending inventory valuation at December 31, 2016 under:
a) FIFO
b) LIFO
(Hint: Compute ending inventory under each method, and then compare
results.)
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