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Mower-Blower Sales Company started business on January 20, 2022. Products sold were snow blowers and lawn mowers. Each product sold for $1,400. Purchases during 2022 were as follows: January 21 February 3 February 28 March 13 April 6 May 22 June 3 June 20 August 15 September 20 November 7 Blowers 10 @ $700 20 @ $680 20 @ $650 10 @ $650 10 @ $700 Mowers 10 @ $620 20 @ $640 20 @ $660 30 @ $700 10 @ $640 10 @ $620

Mower-Blower Sales Company started business on January 20, 2022. Products sold were snow blowers and lawn mowers. Each product sold for $1,400. Purchases during 2022 were as follows: January 21 February 3 February 28 March 13 April 6 May 22 June 3 June 20 August 15 September 20 November 7 Blowers 10 @ $700 20 @ $680 20 @ $650 10 @ $650 10 @ $700 Mowers 10 @ $620 20 @ $640 20 @ $660 30 @ $700 10 @ $640 10 @ $620

FINANCIAL ACCOUNTING
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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Mower-Blower Sales Company started business on January 20, 2022. Products sold were snow blowers and lawn mowers. Each product sold for $1,400. Purchases during 2022 were as follows: January 21 February 3 February 28 March 13 April 6 May 22 June 3 June 20 August 15 September 20 November 7 Blowers 10 @ $700 20 @ $680 20 @ $650 10 @ $650 10 @ $700 Req A1 The December 31, 2022, inventory included 10 blowers and 20 mowers. Assume the company uses a periodic inventory system. Required: a. 1. Compute ending inventory valuation at December 31, 2022, under the FIFO and LIFO cost flow assumptions. 2. Is there any difference in valuation under FIFO and LIFO. Blowers Mowers b. If the cost of mowers had increased to $750 each by December 26th, and if management had purchased 20 mowers just before the end of the year, which cost flow assumption was probably being used by the firm? Mowers Complete this question by entering your answers in the tabs below. Req A2 and B $ 10 @ $620 20 @ $640 20 @ $660 30 @ $700 10 @ $640 10 @ $620 Compute ending inventory valuation at December 31, 2022, under the FIFO and LIFO cost flow assumptions. FIFO 7,000 $ LIFO 7,000 Show less A
Transcribed Image Text:Mower-Blower Sales Company started business on January 20, 2022. Products sold were snow blowers and lawn mowers. Each product sold for $1,400. Purchases during 2022 were as follows: January 21 February 3 February 28 March 13 April 6 May 22 June 3 June 20 August 15 September 20 November 7 Blowers 10 @ $700 20 @ $680 20 @ $650 10 @ $650 10 @ $700 Req A1 The December 31, 2022, inventory included 10 blowers and 20 mowers. Assume the company uses a periodic inventory system. Required: a. 1. Compute ending inventory valuation at December 31, 2022, under the FIFO and LIFO cost flow assumptions. 2. Is there any difference in valuation under FIFO and LIFO. Blowers Mowers b. If the cost of mowers had increased to $750 each by December 26th, and if management had purchased 20 mowers just before the end of the year, which cost flow assumption was probably being used by the firm? Mowers Complete this question by entering your answers in the tabs below. Req A2 and B $ 10 @ $620 20 @ $640 20 @ $660 30 @ $700 10 @ $640 10 @ $620 Compute ending inventory valuation at December 31, 2022, under the FIFO and LIFO cost flow assumptions. FIFO 7,000 $ LIFO 7,000 Show less A
The December 31, 2022, inventory included 10 blowers and 20 mowers. Assume the company uses a periodic inventory system. Required: a. 1. Compute ending inventory valuation at December 31, 2022, under the FIFO and LIFO cost flow assumptions. 2. Is there any difference in valuation under FIFO and LIFO. b. If the cost of mowers had increased to $750 each by December 26th, and if management had purchased 20 mowers just befor the end of the year, which cost flow assumption was probably being used by the firm? Complete this question by entering your answers in the tabs below. Req A1 a2. b. Req A2 and B Show less a2. Is there any difference in valuation under FIFO and LIFO. b. If the cost of mowers had increased to $750 each by December 26th, and if management had purchased 20 mowers just before the end of the year, which cost flow assumption was probably being used by the firm?
Transcribed Image Text:The December 31, 2022, inventory included 10 blowers and 20 mowers. Assume the company uses a periodic inventory system. Required: a. 1. Compute ending inventory valuation at December 31, 2022, under the FIFO and LIFO cost flow assumptions. 2. Is there any difference in valuation under FIFO and LIFO. b. If the cost of mowers had increased to $750 each by December 26th, and if management had purchased 20 mowers just befor the end of the year, which cost flow assumption was probably being used by the firm? Complete this question by entering your answers in the tabs below. Req A1 a2. b. Req A2 and B Show less a2. Is there any difference in valuation under FIFO and LIFO. b. If the cost of mowers had increased to $750 each by December 26th, and if management had purchased 20 mowers just before the end of the year, which cost flow assumption was probably being used by the firm?
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