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 Beginning inventory, January 1 Transactions during the year: a. Purchase, January 30 b. Sale, March 14 ($100 each) C. Purchase, May 1 d. Sale, August 31 ($100 each) a. Last-in, first-out b. Weighted average cost First-in, first-out Specific identification C. d. Units 1,400 2,450 (1,050) 1,150 (1,500) Unit Cost $ 55 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 65 85 Ending Inventory Cost of Goods Sold
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 Beginning inventory, January 1 Transactions during the year: a. Purchase, January 30 b. Sale, March 14 ($100 each) C. Purchase, May 1 d. Sale, August 31 ($100 each) a. Last-in, first-out b. Weighted average cost First-in, first-out Specific identification C. d. Units 1,400 2,450 (1,050) 1,150 (1,500) Unit Cost $ 55 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 65 85 Ending Inventory Cost of Goods Sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Transactions
Beginning inventory, January 1
Transactions during the year:
a. Purchase, January 30
b.
C.
Purchase, May 1
d. Sale, August 31 ($100 each)
Sale, March 14 ($100 each)
Units
1,400
2,450
(1,050)
1,150
(1,500)
a.
Last-in, first-out
b. Weighted average cost
C. First-in, first-out
d. Specific identification
Unit
Cost
$ 55
65
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:
Amount of Goods
Available for Sale
85
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.)
Ending Inventory
Cost of Goods
Sold
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