Question

Baldwin, Inc. had the following balances and transactions during 2019:

Beginning Merchandise Inventory as of January 1, 2019	125 units at $81
March 10	Sold 50 units
June 10	Purchased 225 units at $86
October 30	Sold 175 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?

Answer 1

Answer:- The cost of goods sold under FIFO method of 225 units is $18725.

Explanation:-

FIFO Method
Goods purchased			Cost of goods sold			Inventory balance
Date	# of units	Cost per unit	# of units sold	Cost per unit	Cost of goods sold	# of units	Cost per unit	Inventory balance
Jan-01						125	81	10125
Mar-10			50	81	4050	75	81	6075
Jun-10	225	86				75	81	6075
						225	86	19350
Oct-30			75	81	6075	125	86	10750
			100	86	8600
Totals			225		18725