1. Compute a-d using each of the following inventory costing methods

2. Of the 4 methods, which will result in the highest gross profit?

3. Of the 4 methods, which will result in the lowest income taxes?

Gladstone company tracks the number of units purchased and sold throughout each accounting period bu 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. Units Unit Cost Transactions Beginning inventory, January 1 3,400 $50 Transactions during the year: a. Purchase, January 30 4,700 65 b. Sale, March 14 ($100 each) (3,050) c. Purchase, May 1 3,400 80 d. Sale, August 31 ($100 each) (3,500) Assuming that for Specific identification method (it 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 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 methods: intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Amount of Goods Cost of Goods Available for Sale Ending Inventory Sold a. Last-in, first-out 747,500 368,250 379,250 b. Weighted average cost 747,500 c. First-in, first-out 747,500 d. Specific identification 747,500