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

Answer 1

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