Mower-Blower Sales Co. started business on January 20, 2010. Products sold were snow blowers and lawn mowers. Each product sold for $350. Purchases during 2010 were as follows:

The December 31, 2010, inventory included 10 blowers and 25 mowers. Assume the company uses a periodic inventory system.

Required:
a. What will be the difference between ending inventory valuation at December 31, 2010, and cost of goods sold for 2010, under the FIFO and LIFO cost-flow assumptions?
b. If the cost of mowers had increased to $240 each by December 1, and if management had purchased 30 mowers at that time, which cost-flow assumption was probably being used by the firm? Explain youranswer.

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Blowers Mowers 20$200 40 195 30 190 20 190 January 21 February 3 February 28 March 13 April 6 May 22 June 3 June 20 August 16 September 20 Novenber 7 20$210 40 a 215 40a 220 60a 230 20 a 215 20 a 210 20 200