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:




Jan 21



Feb 3



Feb 28

30 @190


Mar 13



Apr 6



May 22



Jun 3



Jun 20



Aug 15



Sep 20



Nov 7



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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