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 p box ($15,000), and he made the following purchases of candy during the year: March 1 August 15 November 20 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 Feedback $15,500 33,000 17,000 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 Incomert
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 p box ($15,000), and he made the following purchases of candy during the year: March 1 August 15 November 20 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 Feedback $15,500 33,000 17,000 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 Incomert
Chapter1: Financial Statements And Business Decisions
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Problem 3-3
Inventories (LO 3.2)
T
B
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 11
August 15
November 20
Ending inventory.
Cost of goods sold
Feedback
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.
6
10,000 boxes at $1.55
20,000 boxes at $1.65
10,000 boxes at $1.70
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
Incorrect
H
Check My Work 4 more Check My Work uses remaining.
Print Item
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afe
$15,500
33,000
17,000
4+
8
Ⓡ
1000
JKL
9
alt
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Transcribed Image Text:via McCollum XR Homepage | Robeson X
2
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MAT-143-BD1.2023SP X CengageNOWv2 | On X
https://v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession
Business Income & Ex
09
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03-11
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03-01 Algo
R.03-02
R.03-03
PR03-04 Algo
PR.03-06
PR 03-06
Progress: 15/41 items
62"F
Mostly clear
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Problem 3-3
Inventories (LO 3.2)
T
B
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 11
August 15
November 20
Ending inventory.
Cost of goods sold
Feedback
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.
6
10,000 boxes at $1.55
20,000 boxes at $1.65
10,000 boxes at $1.70
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
Incorrect
H
Check My Work 4 more Check My Work uses remaining.
Print Item
H
N
&
Search
afe
$15,500
33,000
17,000
4+
8
Ⓡ
1000
JKL
9
alt
MindTap-Cengage Le x MindTap-Cengage Le x +
Locator=&inprogress=false
A to
L
P
ctri
?
{
[
+
L
<
}
]
pause
delete
backspace
enter
Previous
home
AD
lock
Σ
7
4
←
Next
1
1
end
6:48 PM
2/14/2023
8
5
X
Expert Solution
Step 1 Introduction
The inventory can be valued using various methods as FIFO, LIFO and average method. Using FIFO method, the oldest inventory is sold first. Using LIFO method, newer inventory is sold first.
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