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our company manufactures chocolate bars and uses raw liquid chocolate in bulk form (which it stores in a single large heated tank) to make the
our company manufactures chocolate bars and uses raw liquid chocolate in bulk form (which it stores in a single large heated tank) to make the bars. On December 31, 2019 the tank held 300 gallons of raw liquid chocolate valued at $19,000. On January 28, 2020 it bought 10,000 gallons of raw liquid chocolate for $300,000, and on September 12, 2020 it bought a further 22,000 gallons for $408,000. Note: all of these 2020 deliveries were stored in the aforementioned heated tank, and the company uses average costs to value inventory. On December 31st, 2020 there remained 9,000 gallons of raw liquid chocolate left over in the heated tank
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