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. TransactionsUnitsUnit CostBeginning 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 ($100 each) (3,300) Assuming that for the Specific identification method (item 1d) the March 14 sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the sale of August 31 was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1. Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its inventorycosting method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided thefollowing information at the end of the annual accounting period, December 31.UnitTransactionsUnitsCost$ 45Beginning inventory, January 1Transactions during the year:Purchase, January 30Sale, March 14 ($100 each)Purchase, May 1Sale, August 31 ($100 each)3,2004,550(2,850)3,250(3,300)а.55b.с.75d.Assuming that for Specific identification method (item 1d) the March 14 sale was selected two-fifths from the beginning inventory andthree-fifths from the purchase of January 30. Assume that the sale of August 31 was selected from the remainder of the beginninginventory, 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 thefollowing inventory costing methods: (Round intermediate calculations to 2 decimal places and final answers to the nearestwhole dollar amount.) Assuming that for Specific identification method (item 1d) the March 14 sale was selected two-fifths from the beginning inventory andthree-fifths from the purchase of January 30. Assume that the sale of August 31 was selected from the remainder of the beginninginventory, 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 thefollowing inventory costing methods: (Round intermediate calculations to 2 decimal places and final answers to the nearestwhole dollar amount.)Amount of GoodsCost of GoodsEnding InventoryAvailable for SaleSold638,000 $638,000 $Last-in, first-out$234,750 $403,250a.b. Weighted average cost$281,300 $356,700c. First-in, first-out$638,000d. Specific identification$638,000

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Description: 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

Weighted average is one inventory costing method adjusts the cost per unit of inventory every time…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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.)

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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