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. Unit Transactions Units Cost 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) 1,800 50 2,500 1,200 62 (1,450) 80 (1,900) 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. 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 Required 1. 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: Amount of Goods Available for Sale Ending Cost of Goods Sold a. Last-in, first-out b. Weighted average ostS C. First-in, first-out d. Specific identification 341,000r 341,000 41,000 $ 341,000 111,700 S 133,300 S 54,900 S 229,300 207,700 186,100
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. Unit Transactions Units Cost 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) 1,800 50 2,500 1,200 62 (1,450) 80 (1,900) 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. 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 Required 1. 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: Amount of Goods Available for Sale Ending Cost of Goods Sold a. Last-in, first-out b. Weighted average ostS C. First-in, first-out d. Specific identification 341,000r 341,000 41,000 $ 341,000 111,700 S 133,300 S 54,900 S 229,300 207,700 186,100
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 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.
Unit
Transactions
Units Cost
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)
1,800 50
2,500
1,200
62
(1,450)
80
(1,900)
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. 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
Required
1. 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:
Amount of Goods
Available for Sale Ending
Cost of Goods
Sold
a. Last-in, first-out
b. Weighted average ostS
C. First-in, first-out
d. Specific identification
341,000r
341,000
41,000 $
341,000
111,700 S
133,300 S
54,900 S
229,300
207,700
186,100
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