Q1) Cost flow assumptions - FIFO and LIFO using periodic system. Mower Blowers coy began business on Jan 20, 2009. Products sold were snow blowers and lawn mowers. Every product sold for $350. Purchases during 2009 were as follows:
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Blowers
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Mowers
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Jan 21
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20@200
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Feb 3
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40@195
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Feb 28
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30 @190
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Mar 13
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20@190
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Apr 6
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20@120
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May 22
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40@215
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Jun 3
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40@220
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Jun 20
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60@230
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Aug 15
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20@215
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Sep 20
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20@210
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Nov 7
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20@200
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In inventory at Dec 31, 2009, 10 blowers and 25 mowers. Suppose coy utilizes period inventory system. What will be difference between ending inventory valuation at December 31, 2009, and cost of goods sold for 2009, under FIFO and LIFO cost-flow supposition? Calculate ending inventory and cost of goods sold under each method, and then compare results.