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Lawrence owns a small candy store that sells one type of candy. His beginning inventory of candy was made up of 10,000 boxes costing $1.50 per box ($15,000), and he made the following purchases of candy during the year: March 1 10,000 boxes at $1.60 $16,000 August 15 20,000 boxes at $1.70 34,000 November 20 10,000 boxes at $1.80 18,000 At the end of the year, Lawrence's inventory consisted of 15,000 boxes of candy. a.  Calculate Lawrence's ending inventory and cost of goods sold using the FIFO inventory valuation method. Ending inventory $ Cost of goods sold $ b.  Calculate Lawrence's ending inventory and cost of goods sold using the LIFO inventory valuation method. Ending inventory $ Cost of goods sold $ How do you do this?

Lawrence owns a small candy store that sells one type of candy. His beginning inventory of candy was made up of 10,000 boxes costing $1.50 per box ($15,000), and he made the following purchases of candy during the year: March 1 10,000 boxes at $1.60 $16,000 August 15 20,000 boxes at $1.70 34,000 November 20 10,000 boxes at $1.80 18,000 At the end of the year, Lawrence's inventory consisted of 15,000 boxes of candy. a.  Calculate Lawrence's ending inventory and cost of goods sold using the FIFO inventory valuation method. Ending inventory $ Cost of goods sold $ b.  Calculate Lawrence's ending inventory and cost of goods sold using the LIFO inventory valuation method. Ending inventory $ Cost of goods sold $ How do you do this?

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 18E: Lakeesha Barnett owns and operates a package mailing store in a college town. Her store, Send It...
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Lawrence owns a small candy store that sells one type of candy. His beginning inventory of candy was made up of 10,000 boxes costing $1.50 per box ($15,000), and he made the following purchases of candy during the year:

March 1 10,000 boxes at $1.60 $16,000
August 15 20,000 boxes at $1.70 34,000
November 20 10,000 boxes at $1.80 18,000

At the end of the year, Lawrence's inventory consisted of 15,000 boxes of candy.

a.  Calculate Lawrence's ending inventory and cost of goods sold using the FIFO inventory valuation method.

Ending inventory $
Cost of goods sold $

b.  Calculate Lawrence's ending inventory and cost of goods sold using the LIFO inventory valuation method.

Ending inventory $
Cost of goods sold $

How do you do this?

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