Gladstone Limited 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. Transactions Beginning inventory, January 1 Transactions during the year: Purchase, January 30 C. Sale, March 14 ($12 each) Purchase, May 1 d. Sale, August 31 ($12 each) Required: Units 2,000 Unit Cost $ 6.00 2,000 9.00 (1,400) 1,000 (1,500) 10.00 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. For Specific identification, assuming that 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. (Do not round Weighted average cost per unit. Round your final answers to the nearest dollar amount.) a. Weighted average cost. b. First-in, first-out. c. Specific identification. Goods available for sale Ending inventory Cost of goods sold

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Manji 

Gladstone Limited 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.
Transactions
Beginning inventory, January 1
Transactions during the year:
Purchase, January 30
C.
Sale, March 14 ($12 each)
Purchase, May 1
d. Sale, August 31 ($12 each)
Required:
Units
2,000
Unit Cost
$ 6.00
2,000
9.00
(1,400)
1,000
(1,500)
10.00
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. For Specific identification, assuming that 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. (Do not round Weighted average cost per unit.
Round your final answers to the nearest dollar amount.)
a. Weighted average cost.
b. First-in, first-out.
c. Specific identification.
Goods
available for
sale
Ending
inventory
Cost of goods
sold
Transcribed Image Text:Gladstone Limited 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. Transactions Beginning inventory, January 1 Transactions during the year: Purchase, January 30 C. Sale, March 14 ($12 each) Purchase, May 1 d. Sale, August 31 ($12 each) Required: Units 2,000 Unit Cost $ 6.00 2,000 9.00 (1,400) 1,000 (1,500) 10.00 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. For Specific identification, assuming that 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. (Do not round Weighted average cost per unit. Round your final answers to the nearest dollar amount.) a. Weighted average cost. b. First-in, first-out. c. Specific identification. Goods available for sale Ending inventory Cost of goods sold
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education