# Lawrence owns a small candy store that sells one type of candy. His beginning inventory of candy was made up

## Question:

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 \$ _________________

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...

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Related Book For

## Income Tax Fundamentals 2015

ISBN: 9781305177772

33rd Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill

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