Baldwin Company had the following balances and transactions during? 2019: Beginn
ID: 2508376 • Letter: B
Question
Baldwin Company had the following balances and transactions during? 2019:
Beginning Merchandise Inventory as of January? 1, 2019
150 units at $82
March 10
Sold 80 units
June 10
Purchased 270
units at $84
October 30
Sold 230 units
What would be reported as Cost of Goods Sold on the income statement for the year ending December? 31, 2019 if the perpetual inventory system and the
first??in,First?out inventory costing method are? used?
A.
$25,740
B.
$19,180
C.
$12,300
D.
$34,980
Beginning Merchandise Inventory as of January? 1, 2019
150 units at $82
March 10
Sold 80 units
June 10
Purchased 270
units at $84
October 30
Sold 230 units
Explanation / Answer
The Answer is A - $25,740
FIFO METHOD
No
Qty Purchased
Unit Cost
Total Cost
Qty Sold
Unit cost
Total cost of goods sold
Inv.Qty
Unit Cost
Total cost
Opening
150
82
12300
Mar 10
80
82
6560
70
82
5740
June 10
270
84
22680
70
82
5740
270
84
22680
Oct 30
70
82
5740
40
84
3360
160
84
13440
310
25,740
40
84
3360
The amount that would be reported as Cost of Goods Sold on the income statement for the year ending December? 31, 2019 = $25,740
No
Qty Purchased
Unit Cost
Total Cost
Qty Sold
Unit cost
Total cost of goods sold
Inv.Qty
Unit Cost
Total cost
Opening
150
82
12300
Mar 10
80
82
6560
70
82
5740
June 10
270
84
22680
70
82
5740
270
84
22680
Oct 30
70
82
5740
40
84
3360
160
84
13440
310
25,740
40
84
3360
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