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.Required: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.) Of the three methods, which will result in the highest gross profit? Last-in, first-outWeighted average costFirst-in, first-outSpecific identification 2-b. Of the three methods, which will result in the lowest income taxes? Last-in, first-outWeighted average costFirst-in, first-outSpecific identification I'm also having trouble with the Amount of goods availible for sale column for Last-in, first-out, Weighted average cost, First-in, first-out Amount of GoodsAvailable for SaleCost of GoodsSoldEnding Inventory227,750 $469,1506,900 $6,900 $a. Last-in, first-out$b. Weighted average cost$272,550 $424,350First-in, first-out$6,9002$317,3502$379,550C. UnitTransactionsUnitsCost$ 55Beginning inventory, January 1Transactions during the year:a. Purchase, January 30Sale, March 14 ($100 each)Purchase, May 1Sale, August 31 ($100 each)3, 2004,100(2,850)2,800(3,300)69c.85

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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 th

Periodic Inventory System is the system in which the COGS and the cost of the Ending Inventory are…

Answered: Gladstone Company tracks the number of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

Required:

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.)

Of the three methods, which will result in the highest gross profit?

Last-in, first-out
Weighted average cost
First-in, first-out
Specific identification

2-b. Of the three methods, which will result in the lowest income taxes?

Last-in, first-out
Weighted average cost
First-in, first-out
Specific identification

I'm also having trouble with the Amount of goods availible for sale column for Last-in, first-out, Weighted average cost, First-in, first-out

Amount of Goods
Available for Sale
Cost of Goods
Sold
Ending Inventory
227,750 $
469,150
6,900 $
6,900 $
a. Last-in, first-out
$
b. Weighted average cost
$
272,550 $
424,350
First-in, first-out
$
6,900
2$
317,350
2$
379,550
C.

Unit
Transactions
Units
Cost
$ 55
Beginning inventory, January 1
Transactions during the year:
a. Purchase, January 30
Sale, March 14 ($100 each)
Purchase, May 1
Sale, August 31 ($100 each)
3, 200
4,100
(2,850)
2,800
(3,300)
69
c.
85

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