Mower-Blower Sales Co. started business on January 20, 2016. Products sold were snow blowers and lawn mowers. Each product sold for $350. Purchases during 2016 were as follows:
| |
Blowers |
Mowers |
| January 21 |
24 |
@ |
$ |
198 |
|
|
|
|
| February 3 |
47 |
@ |
|
190 |
|
|
|
|
| February 28 |
25 |
@ |
|
191 |
|
|
|
|
| March 13 |
15 |
@ |
|
194 |
|
|
|
|
| April 6 |
|
|
|
|
16 |
@ |
$ |
212 |
| May 22 |
|
|
|
|
35 |
@ |
|
215 |
| June 3 |
|
|
|
|
45 |
@ |
|
216 |
| June 20 |
|
|
|
|
51 |
@ |
|
227 |
| August 15 |
|
|
|
|
18 |
@ |
|
215 |
| September 20 |
|
|
|
|
16 |
@ |
|
212 |
| November 7 |
23 |
@ |
|
198 |
|
|
|
|
The December 31, 2016, inventory included 10 blowers and 25 mowers. Assume the company uses a periodic inventory system.
Required:
1. Compute ending inventory valuation at December 31, 2016, under the FIFO and LIFO cost-flow assumptions. (Hint: Compute ending inventory under each method, and then compare results.)