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: January 21 February 3 February 28 March 13 April 6 May 22 June 3 June 201 August 15 September 20 November 7 Blowers 15@ $ 205 42 193 33 194 25 187 23@ 205 Mowers 20@ $215 216 31 37 215 63@ 227 20 216 20 215 The December 31, 2019, Inventory Included 10 blowers and 25 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.

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: January 21 February 3 February 28 March 13 April 6 May 22 June 3 June 201 August 15 September 20 November 7 Blowers 15@ $ 205 42 193 33 194 25 187 23@ 205 Mowers 20@ $215 216 31 37 215 63@ 227 20 216 20 215 The December 31, 2019, Inventory Included 10 blowers and 25 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information [The following information applies to the questions displayed below.] The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations. January 20 April 21 July 25 September 19 Purchased 500 units @ $ 7 = Purchased 300 units @ $9 = Purchased 380 units @ $12 = Purchased 190 units @ $14 = $3,500 2,700 4,560 2,660 During the year, The Shirt Shop sold 1,110 T-shirts for $23 each. c. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Difference in gross margin between the FIFO and LIFO cost flow assumptions
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