Difference between ending inventory valuation and cost of

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Difference between ending inventory valuation and cost of goods sold.

Cost flow assumptions - FIFO and LIFO using a periodic system. Mower Blowers coy started business on Jan 20, 2009. Products sold were snow blowers and lawn mowers. Each product sold for $350. Purchases during 2009 were as follows:

 

Blowers

Mowers

Jan 21

20@200

 

Feb 3

40@195

 

Feb 28

30 @190

 

Mar 13

20@190

 

Apr 6

 

20@120

May 22

 

40@215

Jun 3

 

40@220

Jun 20

 

60@230

Aug 15

 

20@215

Sep 20

 

20@210

Nov 7

20@200

 

In inventory at Dec 31, 2009, 10 blowers and 25 mowers. Assume the coy uses a period inventory system. What will be the difference between ending inventory valuation at December 31, 2009, and the cost of goods sold for 2009, under FIFO and LIFO cost-flow assumptions? Hint: compute ending inventory and cost of goods sold under each method, and then compare results.

Reference no: EM13355745

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