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 Transactions during the year: Units Unit Cost Beginning inventory, January 1 3,100 $ 40 4,400 55 b. Sale, March 14 ($100 each) (2,750) 3,100 (3,200) 70 a. Purchase, January 30 c. Purchase, May 1 d. Sale, August 31 ($100 each) 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. Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 using the specific identification method, assuming that 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. Complete this question by entering your answers in the tabs below. Req 1 Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 under each of the inventory costing methods. (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Specific identification Amount of Goods Available for Sale Ending Inventory Cost of Goods Sold < Req 1 next
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 Transactions during the year: Units Unit Cost Beginning inventory, January 1 3,100 $ 40 4,400 55 b. Sale, March 14 ($100 each) (2,750) 3,100 (3,200) 70 a. Purchase, January 30 c. Purchase, May 1 d. Sale, August 31 ($100 each) 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. Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 using the specific identification method, assuming that 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. Complete this question by entering your answers in the tabs below. Req 1 Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 under each of the inventory costing methods. (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Specific identification Amount of Goods Available for Sale Ending Inventory Cost of Goods Sold < Req 1 next
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
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
Transactions during the year:
Units
Unit
Cost
Beginning inventory, January 1
3,100
$ 40
4,400
55
b. Sale, March 14 ($100 each)
(2,750)
3,100
(3,200)
70
a. Purchase, January 30
c. Purchase, May 1
d. Sale, August 31 ($100 each)
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.
Required:
1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 using the specific
identification method, assuming that 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.
Complete this question by entering your answers in the tabs below.
Req 1
Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 under each of the
inventory costing methods. (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar
amount.)
Specific identification
Amount of Goods
Available for Sale Ending Inventory
Cost of Goods
Sold
< Req 1
next
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