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: a. Purchase, January 30 b. Sale, March 14 ($12 each) c. Purchase, May 1 d. Sale, August 31 ($12 each) a Weighted average cost b. First-in, fest-out Specific identification Goods available for sale 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. 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 doller amount.) S S $ Units 1,800 2,000 (1,300) 1,200 (1,500) Unit Cost $ 6.00 8.00 10.00 THAN Ending Cost of goods Inventory sold 30.000 $ 7600 3 22.400 30,000 30,000
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: a. Purchase, January 30 b. Sale, March 14 ($12 each) c. Purchase, May 1 d. Sale, August 31 ($12 each) a Weighted average cost b. First-in, fest-out Specific identification Goods available for sale 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. 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 doller amount.) S S $ Units 1,800 2,000 (1,300) 1,200 (1,500) Unit Cost $ 6.00 8.00 10.00 THAN Ending Cost of goods Inventory sold 30.000 $ 7600 3 22.400 30,000 30,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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!
a. Purchase, January 30
b. Sale, March 14 ($12 each)
e. Purchase, May 1
d. Sale, August 31 ($12 each)
a Weighted average cost
b First-infest-out
Specific kientification
Goods
available for
sale
Units
1,800
$
S
$
2,000
(1,300)
1,200
(1,500)
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. 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 doller amount.)
Ending
inventory
Unit Cost
$6.00
30,000 $ 7.600
30.000
HIBAY
30.000
8.00
10.00
Cost of goods
sold
22.400
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