Mower-Blower Sales Co. started business on January 20, 2016. Products sold were snow blowers and lawn mowers. Each product sold for $350. Purchases during 2016 were as follows: Mowers Blowers 23@ $ 206 31@ 197 31@ 190 21@ 180 January 21 February 3 February 28 March 13 April 6 May 22 June 3 June 20 August 15 September 20 November 7 19@ $214 35@ 212 38 @ 222 61@ 232 20@ 212 19@ 214 17@206 The December 31, 2016, inventory included 7 blowers and 23 mowers. Assume the company uses a periodic inventory system. Required: a-1. Compute ending inventory valuation at December 31, 2016, under the FIFO and LIFO cost-flow assumptions. (Hint: Compute ending inventory under each method, and then compare results.) FIFO LIFO $ 2,060 Blowers Mowers a-2. Is there any difference in valuation under LIFO and FIFO. Yes No b. 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 References eBook & Resources