### Inventory and Cost of Goods Sold Analysis**Gladstone Company Overview:**Gladstone Company utilizes a perpetual inventory system, tracking units purchased and sold throughout the accounting period. They apply the LIFO (Last-In, First-Out) costing method at the time of each sale. Below is the inventory data available at the end of the accounting period on December 31.#### Transactions Summary:- **Beginning Inventory (January 1):** - Units: 1,500 - Unit Cost: $50- **Transactions During the Year:** 1. **Purchase (January 30):** - Units: 2,200 - Unit Cost: $62 2. **Sale (March 14):** - Units Sold: 1,390 - Selling Price: $100 each 3. **Purchase (May 1):** - Units: 1,140 - Unit Cost: $80 4. **Sale (August 31):** - Units Sold: 1,600 - Selling Price: $100 each#### Task:1. **Calculate the Cost of Goods Sold (COGS) and Ending Inventory:** - Use the LIFO method to compute COGS and Ending Inventory as of each sale date.**Calculations:**- **Cost of Goods Sold:** | Transaction Date | Units Sold | Cost per Unit | Total Cost | |----------------|------------|---------------|------------| | March 14 | 1,390 | Based on LIFO | [To be calculated] | | August 31 | 1,600 | Based on LIFO | [To be calculated] |- **Ending Inventory:** | Description | Units | Cost per Unit | Total Cost | |-------------------|----------|---------------|------------| | Remaining Units | [To be calculated] | Based on LIFO | [To be calculated] |- **Table for Calculation:** | | Amount | |----------------------------|--------------| | **Cost of Goods Sold** | [Calculated] | | **Ending Inventory** | [Calculated] |Please complete the calculations using the LIFO method, considering the cost per unit and unit count from the most recent purchases first.

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Description: ### Inventory and Cost of Goods Sold Analysis**Gladstone Company Overview:**Gladstone Company utilizes a perpetual inventory system, tracking units purchased and sold throughout the accounting period. They apply the LIFO (Last-In, First-Out) costing

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Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its invento costing method at the time of each sale, as if it uses a perpetual inventory system. Assume its accounting records provided th following information at the end of the annual accounting period, December 31. Unit Transactions Units Cost $ 50 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) 1,500 2,200 (1,390) 1,140 (1,600) 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. Cost of Goods Sold

Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its invento costing method at the time of each sale, as if it uses a perpetual inventory system. Assume its accounting records provided th following information at the end of the annual accounting period, December 31. Unit Transactions Units Cost $ 50 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) 1,500 2,200 (1,390) 1,140 (1,600) 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. Cost of Goods Sold

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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