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Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Unit Transactions Units Cost $ 50 Beginning inventory, January 1 Transactions during the year: Purchase, January 30 b. 1,100 a. 2,150 60 Sale, March 14 ($100 each) Purchase, May 1 (750) 850 85 C. d. Sale, August 31 ($100 each) (1,200) Assuming that for Specific identification method (item 1d) the March 14 sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the sale of August 31 was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Amount of Goods Available for Sale Cost of Goods Ending Inventory Sold a. Last-in, first-out b. Weighted average cost c. First-in, first-out d. Specific identification

Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Unit Transactions Units Cost $ 50 Beginning inventory, January 1 Transactions during the year: Purchase, January 30 b. 1,100 a. 2,150 60 Sale, March 14 ($100 each) Purchase, May 1 (750) 850 85 C. d. Sale, August 31 ($100 each) (1,200) Assuming that for Specific identification method (item 1d) the March 14 sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the sale of August 31 was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Amount of Goods Available for Sale Cost of Goods Ending Inventory Sold a. Last-in, first-out b. Weighted average cost c. First-in, first-out d. Specific identification

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 2PB: LIFO perpetual inventory The beginning inventory for Dunne Co. and data on purchases and sales for a...
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PA7-1 Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory System [L 7- 3] Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Unit Transactions Units Cost $ 50 Beginning inventory, January 1 Transactions during the year: Purchase, January 30 b. 1,100 2,150 (750) a. 60 Sale, March 14 ($100 each) Purchase, May 1 d. Sale, August 31 ($100 each) c. 850 85 (1,200) Assuming that for Specific identification method (item 1d) the March 14 sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the sale of August 31 was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Amount of Goods Available for Sale Ending Inventory Cost of Goods Sold Last-in, first-out a b. Weighted average cost First-in, first-out C. d. Specific identification
Transcribed Image Text:PA7-1 Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory System [L 7- 3] Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Unit Transactions Units Cost $ 50 Beginning inventory, January 1 Transactions during the year: Purchase, January 30 b. 1,100 2,150 (750) a. 60 Sale, March 14 ($100 each) Purchase, May 1 d. Sale, August 31 ($100 each) c. 850 85 (1,200) Assuming that for Specific identification method (item 1d) the March 14 sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the sale of August 31 was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Amount of Goods Available for Sale Ending Inventory Cost of Goods Sold Last-in, first-out a b. Weighted average cost First-in, first-out C. d. Specific identification
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