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Problem - 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.
Required -
a. Calculate Lawrence's ending inventory and cost of goods sold using the FIFO inventory valuation method.
b. Calculate Lawrence's ending inventory and cost of goods sold using the LIFO inventory valuation method.
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