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:

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.

b. Calculate Lawrence’s ending inventory and cost of goods sold using the LIFO inventory valuation method.

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March 1 August 15 November 20 10,000 boxes at $1.55 20,000 boxes at $1.65 10,000 boxes at $1.70 $15,500 33,000 17,000