Question

Baldwin, Inc. had the following balances and transactions during 2025 Beginning Merchandise Inventory as of January 1, 2025 100 units at $81 March 10 Sold 50 units June 10 Purchased 250 units at 586 October 30 Sold 150 units What would be reported as Cost of Goods Sold on the income statement for the year ending December 31, 2025 the perpetual inventory system and the first - in, first-out inventory costing method are used? O A $8,100 B. $16,700 C. $29.800 OD. $12,650

Answer 1

Answer: The correct option is B i.e. $16,700

Purchases First-in first-out method Cost of Goods Sold Cost per Units unit Date Cost per Units Total Total Units Inventory Cost per unit 81 Total unit Jan-01 Mar-10 Jun-10 50 81 4050 81 250 86 21500 100 50 50 250 150 81 8100 4050 4050 21500 12900 86 Oct-30 50 86 81 86 100 4050 8600 16700 Total 21500 12900