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.TransactionsBeginning inventory, January 1Transactions during the year:a. Purchase, January 30b. Sale, March 14 ($100 each)c. Purchase, May 1d. Sale, August 31 ($100 each)Units1,500Req 12,600(1,150)1,300(1,600)Assuming that for Specific identification method (item 1d) the March 14 sale was selected two-fifths from the beginning inventory andthree-fifths from the purchase of January 30.Required:1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 under each of thefollowing inventory costing methods:a. Last-in, first-out.b. Weighted average cost.c. First-in, first-out.Reg 2AUnitCost$ 60d. Specific identification, assuming that the March 14 sale was selected two-fifths from the beginning inventory and three-fifths fromthe purchase of January 30. Assume that the sale of August 31 was selected from the remainder of the beginning inventory, with thebalance from the purchase of May 1.22-a. Of the four methods, which will result in the highest gross profit?2-b. Of the four methods, which will result in the lowest income taxes?Req 2817290Complete this question by entering your answers in the tabs below.< Prev 5 of 5⠀⠀Next Req 1Req 2ACompute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 under each of theinventory costing methods. (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollaramount.)a. Last-in, first-outb. Weighted average costReg 28c. First-in, first-outd. Specific identification .Amount of GoodsAvailable for SaleReg1Ending InventoryCost of GoodsSoldReq 2A >

Name: Gladstone Company tracks the number of units purchased and sold throu
Uploaded: 2024-03-20T06:32:37.000Z
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Description: 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 th