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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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