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. 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) Units 2,300 3,000 (1,550) 1,300 (2,400) Unit Cost $ 50 62 80 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.
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. 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) Units 2,300 3,000 (1,550) 1,300 (2,400) Unit Cost $ 50 62 80 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.
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 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.
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)
Units
2,300
3,000
(1,550)
1,300
(2,400)
Unit
Cost
$ 50
62
80
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.
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