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:

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 $ _________________

Transcribed Image Text:

March 1 August 15 November 20 10,000 boxes at $1.60 20,000 boxes at $1.60 10,000 boxes at $1.75 $16,000 32,000 17,500