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 $ 40 3,100 Beginning inventory, January 1 Transactions during the year: a. Purchase, January 30 55 b. Sale, March 14 ($100 each) 4,400 (2,750) 3,100 (3,200) c. Purchase, May 1 70 d. Sale, August 31 ($100 each) Assuming that for Specific identification method (item 1d) the March 14 sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. 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: a. Last-in, first-out. b. Weighted average cost. c. First-in, first-out. d. 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. 2-a. Of the four methods, which will result in the highest gross profit? 2-b. Of the four methods, which will result in the lowest income taxes? Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Req 28 Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 under each of the inventory costing methods. (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) College Coasters is a San Diego-based merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted trial balance at December 1. Cash $ 9,100 Accounts Receivable 1,880 Inventory 360 Prepaid Rent 660 Equipment 740 110 Accumulated Depreciation Accounts Payable 1,280 Salaries and Wages Payable. 300 Income Taxes Payable 0 Common Stock 5,500 Retained Earnings Sales Revenue 3,000 15,780 Cost of Goods Sold 8,810 Rent Expense 1,210. Salaries and Wages Expense 1,700 Depreciation Expense 110 0 Income Tax Expense office Expense 1,400 The company buys coasters from one supplier. All amounts in Accounts Payable on December 1 are owed to that supplier. The inventory on December 1 consisted of 900 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.40. College Coasters records its inventory using perpetual inventory accounts and the FIFO cost flow method. During December, the company entered into the following transactions. Some of these transactions are explained in greater detail below. a. Purchased 500 coasters on account from the regular supplier on 12/1 at a unit cost of $0.42, with terms of n/60 b. Purchased 900 coasters on account from the regular supplier on 12/2 at a unit cost of $0.45, with terms of n/60 c Sold 1,600 coasters on account on 12/3 at a unit price of $1.00 d. Collected $830 from customers on account on 12/4. e Paid the supplier $1,600 cash on account on 12/18 f Paid employees $480 on 12/23, of which $290 related to work done in November and $190 was for wages up to December 22. g. Loaded 80 coasters on a cargo ship on 12/31 to be delivered the following week to a customer in Kona, Hawaii. The sale was made FOB destination with terms of n/60. Other relevant information includes the following at 12/31 h College Coasters has not yet recorded $190 of office expenses incurred in December on account The company estimates that the equipment depreciates at a rate of $9 per month. One month of depreciation needs to be Dunny December, the company entered in the following fansactions. Some of these transactions are explained in greater velan below. a. Purchased 500 coasters on account from the regular supplier on 12/1 at a unit cost of $0.42, with terms of n/60. b. Purchased 900 coasters on account from the regular supplier on 12/2 at a unit cost of $0.45, with terms of n/60. c. Sold 1,600 coasters on account on 12/3 at a unit price of $1.00. d. Collected $830 from customers on account on 12/4. e Paid the supplier $1,600 cash on account on 12/18. f. Paid employees $480 on 12/23, of which $290 related to work done in November and $190 was for wages up to December 22. g. Loaded 80 coasters on a cargo ship on 12/31 to be delivered the following week to a customer in Kona, Hawail. The sale was made FOB destination with terms of n/60. Other relevant information includes the following at 12/31: h. College Coasters has not yet recorded $190 of office expenses incurred in December on account. ces The company estimates that the equipment depreciates at a rate of $9 per month. One month of depreciation needs to be recorded J. Wages for the period from December 23-31 are $100 and will be paid on January 15. k. The $660 of Prepaid Rent relates to a six-month period ending on May 31 of next year. 1. The company incurred $700 of income tax but has made no tax payments this year. m No shrinkage or damage was discovered when the inventory was counted on December 31. n. The company did not declare dividends and there were no transactions involving common stock. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis General Journal tab Prepare the journal entries to record the transactions (a) through (n). Review the accounts as shown in the General Ledger and Trial Balance tabs. General Ledger tab Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances in the General Ledger. Trial Balance tab- You may view either the unadjusted, adjusted, or post-closing trial balance by choosing from the drop- down. Income Statement tab Use the drop-down to select the accounts properly included on the income statement. The unadjusted, adjusted, or post-closing balances will appear for each account based on your selection. Balance Sheet tab Use the drop-down to select the accounts to properly included on the balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Analysis tab - Calculate to one decimal place the inventory turnover ratio and days to sell in 'Analysis Tab