Calculate ending inventory and cost of goods sold


Response to the following 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 $1.60               32,000

November 20   10,000 boxes at $1.75           17,500

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.

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Cost Accounting: Calculate ending inventory and cost of goods sold
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