During 20X5, Baker Company and Baumer Company made the following identical purchases:
September 1^st 100 units @ $10.00
October 1^st 200 units @ $10.50
November 1^st 200 units @ $11.50
December 1^st 100 units @ $12.00
On December 31^st each company sold 400 units, but Baker uses Average Cost inventory valuation and Baumer uses FIFO inventory valuation. Assume there was no beginning inventory. Calculate cost of goods sold and ending inventory for each company. How will the difference in cost of goods sold affect net income?

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The Answer of During 20X5, Baker Company and Baumer Company made the following identical purchases: September 1^st 100 units @ $10.00 October 1^st 200 units @ $10.50 November 1^st 200 units @ $11.50 December 1^st 100 units @ $12.00 On December 31^st each company sold 400 units, but Baker uses Average Cost inventory valuation and Baumer uses FIFO inventory valuation. Assume there was no beginning inventory. Calculate cost of goods sold and ending inventory for each company. How will the difference in cost of goods sold affect net income?

During 20X5, Baker Company and Baumer Company Made the Following