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nventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting ecords provided the following information at the end of the annual accounting period, December 31.

nventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting ecords provided the following information at the end of the annual accounting period, December 31.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: 3,200 $ 55 Purchase, January 30 b. Sale, March 14 ($100 each) Purchase, May 1 d. a. 4,100 (2,850) 2,800 (3,300) 69 c. 85 Sale, August 31 ($100 each) 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: (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Amount of Goods Cost of Goods Ending Inventory Available for Sale Sold Last-in, first-out $ 3,200 $ 227,750 $ 469,150 а. b. Weighted average cost $ 3,200 $ 272,550 424,350 First-in, first-out $ 3,200 $ 317,350 $ 379,550 C.
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: 3,200 $ 55 Purchase, January 30 b. Sale, March 14 ($100 each) Purchase, May 1 d. a. 4,100 (2,850) 2,800 (3,300) 69 c. 85 Sale, August 31 ($100 each) 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: (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Amount of Goods Cost of Goods Ending Inventory Available for Sale Sold Last-in, first-out $ 3,200 $ 227,750 $ 469,150 а. b. Weighted average cost $ 3,200 $ 272,550 424,350 First-in, first-out $ 3,200 $ 317,350 $ 379,550 C.
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