Question - What is the easiest way to figure out ending inventory and cost of goods sold using the FIFO and LIFO methods? My original homework question is:
Lawrence owns a small candy store that sells one type of candy. His beginning inventory 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 $16000
August 15 - 20,000 boxes at $1.70 34,000
November 20 - 10,000 boxes at $1.80 18,000
At the end of the year Lawrence's ending inventory is 15,000 boxes of candy.
a. Calculate ending inventory and cost of goods sold using the FIFO inventory valuation method.
b. Calculate ending inventory and cost of goods sold using the LIFO inventory valuation method.