1. Lawrence owns a small candy store that sells one type ofcandy. His beginning inventory of candy was made up to 10,000 boxescosting $1.50 per box (15,000), and he made the following purchasesof 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, Laurence's inventoryconsisted of 15,000 boxes of candy.
a. Calculate Laurence's ending inventory and cost ofgoods sold using the FIFO inventory valuation method.
Ending inventory $
Cost of goods sold $.
b. Calculate Lawrence's ending inventory and costof goods sold using the LIFO inventory valuation method.
Ending inventory $
Cost of goods sold $.
2. During 2008, Jill, age 39, participated in a section. 401 (k)plan which provides for maximum employee contributions of 12percent. Jill's salary was $90,000 for the year. Jill electsto make the maximum contribution. What is Jill's maximumtax-differed contribution to the plan for the year? $