During 20XX, Baker Company and Baumer Company made the following identical purchases:
100 units @ $12.50
200 units @ $10.50
200 units @ $11.00
100 units @ $12.00
Each company sold 500 units, but Baker uses LIFO inventory valuation and Baumer uses FIFO inventory valuation. Assume there was no beginning inventory. Calculate ending inventory and cost of goods sold for each company. How will the difference in cost of goods sold affect net income?

Question

Quizplus · Accepted Answer

The Answer of During 20XX, Baker Company and Baumer Company made the following identical purchases:
100 units @ $12.50
200 units @ $10.50
200 units @ $11.00
100 units @ $12.00
Each company sold 500 units, but Baker uses LIFO inventory valuation and Baumer uses FIFO inventory valuation. Assume there was no beginning inventory. Calculate ending inventory and cost of goods sold for each company. How will the difference in cost of goods sold affect net income?

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