Difference between ending inventory valuation at december

Assignment Help Financial Accounting

Reference no: EM1310857

Computing ending inventory and cost of goods sold under FIFO and LIFO cost-flow assumptions.

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: EM1310857

Questions Cloud

Cost flow assumptions : 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

Consolidated financial statements : According to US GAAP, what should be the basis for reporting the assets and liabilities of Small within consolidated financial statements created on the date of acquisition?

Computation of unamortised bond premium : Computation of unamortised bond premium, Gain and Loss on bond retirement and Prepare the journal entry to record the retirement of these bonds

Speculate foreign currency within fiscal year : The transaction gain or loss to be recognized over the term of a forward exchange contract entered into to speculate in a foreign currency within a fiscal year is measured by the difference between the:

Difference between ending inventory valuation at december : 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?

Computation of profit margin : Computation of profit margin and total asset turnover and return on total assets for two consecutive years and Comment on such results

Percentage of the total joint costs : If the selling prices of finished products Y and Z remain constant, the percentage of the total joint costs allocated to product Y and product Z would

Evaluate ending inventory and cost of goods sold : Evaluate ending inventory and cost of goods sold under each method, and then compare results.

Gross income with respect to bonds : Hugo was planting a tree when he unearthed 100,000 certificates of ITT bearer bonds, with a current value of $4 million.

User Account

All Pages