Print Preview8/28/2019CengageNOWv2 | Online teaching and learning resource from Cengage Leaming28. PR.03-03Problem 3-3Inventories (LO 3.2)Lawrence owns a small candy store that sells one type of candy. His beginning inventory of candy was made up of10,000 boxes costing $1.50 per box ($15,000), and he made the following purchases of candy during the year:March 110,000 boxes at $1.60 $16,0001uAugust 1520,000 boxes at $1.70 34,000November 20 10,000 boxes at $1.80 18,000At the end of the year, Lawrence's inventory consisted of 15,000 boxes of candy.Calculate Lawrence's ending inventory and cost of goods sold using the FIFO inventory valuation method.Ending inventory $Cost of goods sold $b. Calculate Lawrence's ending inventory and cost of goods sold using the LIFO inventory valuation method.Ending inventory $Cost of goods sold $

Compute the total cost in the year:

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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9.Candance owns a small candy store that sells one type of candy. Her beginning inventory of candy was made up of 10,000 boxes costing $1.50 per box ($15,000), and she 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 $1.70 34,000 November 20 10,000 boxes at $1.80 18,000 At the end of the year, Candance’s inventory consisted of 15,000 boxes of candy. Her Sales for the year is $53,500. What is her cost of goods sold using the FIFO inventory valuation method?
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State College Technology Store is a retial computer store in the university center of a large midwestern university. The school engaged in the following transactions during January of the current year. At December 31 last year, the company’s inventory amounted to $150000. Jan. 8      Purchased 20 Nonpxe laptop computers on account from Led Inc. The laptop comptuers cost $800 each. Payment is due in 30 days Jan. 10 Sold 4 Nopxe laptop computers on account to the Department of Microbiology at State College at a retail sales price of $1200. Unit cost of each laptop was $1000.   a) Prepare journal entries to record these transactions assumingthat the company uses periodic inventory system b. Compute the balance of the Inventory account on January 12 assuming that the company uses periodic inventory system.   c. Compute the cost of goods sold assuming use of periodic inventory system.   d. To create year-end blance for cost of goods sold, please close the beginning…
State College Technology Store is a retial computer store in the university center of a large midwestern university. The school engaged in the following transactions during January of the current year. At December 31 last year, the company’s inventory amounted to $150000. Jan. 8      Purchased 20 Nonpxe laptop computers on account from Led Inc. The laptop comptuers cost $800 each. Payment is due in 30 days Jan. 10 Sold 4 Nopxe laptop computers on account to the Department of Microbiology at State College at a retail sales price of $1200. Unit cost of each laptop was $1000. a. Prepare journal entries to record these transactions on January 8 and January 10 assuming that the company uses perpetual inventory system. Date Debit Credit Db Cr Date Debit Credit Db Cr Date Debit Credit Db Cr
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