FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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.
 

Transactions Units Unit Cost
Beginning inventory, January 1   3,200   $ 45  
Transactions during the year:            
a. Purchase, January 30   4,550     55  
b. Sale, March 14 ($100 each)   (2,850 )      
c. Purchase, May 1   3,250     75  
d. Sale, August 31 ($100 each)   (3,300 )      
 


Assuming that for the 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.

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
$ 45
Beginning inventory, January 1
Transactions during the year:
Purchase, January 30
Sale, March 14 ($100 each)
Purchase, May 1
Sale, August 31 ($100 each)
3,200
4,550
(2,850)
3,250
(3,300)
а.
55
b.
с.
75
d.
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.)
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Transcribed Image Text: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 $ 45 Beginning inventory, January 1 Transactions during the year: Purchase, January 30 Sale, March 14 ($100 each) Purchase, May 1 Sale, August 31 ($100 each) 3,200 4,550 (2,850) 3,250 (3,300) а. 55 b. с. 75 d. 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.)
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
Cost of Goods
Ending Inventory
Available for Sale
Sold
638,000 $
638,000 $
Last-in, first-out
$
234,750 $
403,250
a.
b. Weighted average cost
$
281,300 $
356,700
c. First-in, first-out
$
638,000
d. Specific identification
$
638,000
expand button
Transcribed Image Text: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 Cost of Goods Ending Inventory Available for Sale Sold 638,000 $ 638,000 $ Last-in, first-out $ 234,750 $ 403,250 a. b. Weighted average cost $ 281,300 $ 356,700 c. First-in, first-out $ 638,000 d. Specific identification $ 638,000
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