Problem 3-3 Inventories (LO 3.2) 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: $15,500 33,000 17,000 10,000 boxes at $1.55 20,000 boxes at $1.65 10,000 boxes at $1.70 At the end of the year, Lawrence's inventory consisted of 16,000 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 March 1 August 15 November 20 b. Calculate Lawrence's ending inventory and cost of goods sold using the LIFO inventory valuation method. Ending inventory Cost of goods sold
Problem 3-3 Inventories (LO 3.2) 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: $15,500 33,000 17,000 10,000 boxes at $1.55 20,000 boxes at $1.65 10,000 boxes at $1.70 At the end of the year, Lawrence's inventory consisted of 16,000 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 March 1 August 15 November 20 b. Calculate Lawrence's ending inventory and cost of goods sold using the LIFO inventory valuation method. Ending inventory Cost of goods sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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How to solve fifo and lifo
![MAT-143-BD1.2023SP X CengageNOWv2|Onli x
engagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession
RHomepage | Robeson X
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41 items
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Problem 3-3
Inventories (LO 3.2)
March 11
August 15
November 20
Ending inventory
Cost of goods sold
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:
Feedback
6
At the end of the year, Lawrence's inventory consisted of 16,000 boxes of candy.
a. Calculate Lawrence's ending inventory and cost of goods sold using the FIFO inventory valuation method.
10,000 boxes at $1.55
20,000 boxes at $1.65/
10,000 boxes at $1.70)
Check My Work
Incorrect
40
H
b. Calculate Lawrence's ending inventory and cost of goods sold using the LIFO inventory valuation method.
Ending inventory
Cost of goods sold
Check My Work 4 more Check My Work uses remaining
H
N
Print Item
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Search
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$15,500
33,000
17,000
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Transcribed Image Text:MAT-143-BD1.2023SP X CengageNOWv2|Onli x
engagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession
RHomepage | Robeson X
come & Ex
41 items
R
●
eBook
Problem 3-3
Inventories (LO 3.2)
March 11
August 15
November 20
Ending inventory
Cost of goods sold
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:
Feedback
6
At the end of the year, Lawrence's inventory consisted of 16,000 boxes of candy.
a. Calculate Lawrence's ending inventory and cost of goods sold using the FIFO inventory valuation method.
10,000 boxes at $1.55
20,000 boxes at $1.65/
10,000 boxes at $1.70)
Check My Work
Incorrect
40
H
b. Calculate Lawrence's ending inventory and cost of goods sold using the LIFO inventory valuation method.
Ending inventory
Cost of goods sold
Check My Work 4 more Check My Work uses remaining
H
N
Print Item
&
Search
U
M
1 4+
*
$15,500
33,000
17,000
8
1
K
179 144
(
9
T
O
no
L
>
O
MindTap-Cengage Le X
L
:
Locator=&inprogress=false
P
cul
ALL
2
{
[
+
=
x
MindTap-Cengage Le X +
A SO
}
]
pause
brt sc
delete
backspace
1
Previous
t shirt
home
☆
num
lock
7
home
6
4
6
Next
end
1
0
6:48 PM
2/14/2023
8
9
5
X
***
(?)
Expert Solution
Step 1
Inventory Valuation:
Inventory valuation is an important activity of the accounting department of any business organization, as this helps in calculating the value of unsold goods of the company at the end of an accounting period. Different methods can be used by companies for inventory valuation.
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