Class Execrise.2
Class Execrise.2
Completion requirements
Opened: Friday, 1 November 2019, 12:00 AM
Due: Friday, 8 November 2019, 12:00 AM
During 201X, Baker Company and Baumer Company made the following identical purchases:
•100
units @$10.00
•200
units @$10.50
•100
units @$11.50
•200 units
@ $12.00
Each company sold 350 units, but Baker uses LIFO inventory valuation and Baumer uses FIFO inventory valuation. Assume there was no beginning inventory.
a. Calculate ending inventory and cost of goods sold for each company
b. How will the difference in cost of goods sold affect net income?