Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the time of each sale, as if it uses a perpetual inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Units Unit Cost 1,850 $ 50 Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase, January 30 b. Sale, March 14 ($100 each) (1,460) 2,550 62 c. Purchase, May 1 d. Sale, August 31 ($100 each) (1,950) 1. Calculate the cost of goods sold and ending inventory for Gladstone Company assuming it applies the LIFO cost method perpetually at the time of each sale. 1,210 80
Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the time of each sale, as if it uses a perpetual inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Units Unit Cost 1,850 $ 50 Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase, January 30 b. Sale, March 14 ($100 each) (1,460) 2,550 62 c. Purchase, May 1 d. Sale, August 31 ($100 each) (1,950) 1. Calculate the cost of goods sold and ending inventory for Gladstone Company assuming it applies the LIFO cost method perpetually at the time of each sale. 1,210 80
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 time of each sale, as if it
uses a perpetual inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.
Units Unit Cost
$ 50
Transactions
Beginning inventory, January 1 1,850.
Transactions during the year:
a. Purchase, January 30
b. Sale, March 14 ($100 each) (1,460)
c. Purchase, May 1
d. Sale, August 31 ($100 each) (1,950)
1. Calculate the cost of goods sold and ending inventory for Gladstone Company assuming it applies the LIFO cost method perpetually at the time of each sale.
2,550 62
1,210 80
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