Mower-Blower Sales Co. started business on January 20, 2013. Products sold were snow blowers and lawn mowers. Each product sold for $350. Purchases during 2013 were as follows:

	Blowers	Mowers
January 21	15	@	$	198
February 3	50	@		191
February 28	28	@		200
March 13	19	@		193
April 6					19	@	$	202
May 22					32	@		210
June 3					39	@		224
June 20					65	@		228
August 15					20	@		210
September 20					19	@		202
November 7	15	@		198

In inventory at December 31, 2013, were 12 blowers and 22 mowers. Assume the company uses a periodic inventory system.

Required 1:

(a)	Compute ending inventory valuation at December 31, 2013 under the FIFO and LIFO cost-flow assumptions. (Hint: Compute ending inventory under each method, and then compare results.)

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(b)	Is there any difference in valuation under LIFO and FIFO.
	No Yes

Required 2:

If the cost of mowers had increased to $241 each by December 1, and if management had purchased 30 mowers at that time and if it wants to minimize taxes, which cost-flow assumption was probably being used by the firm?

LIFO

FIFO