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 $31.$

Required:

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.$)$

$2-$a$.$ Of the three methods, which will result in the highest gross profit?

Weighted average cost

First$-$in$,$ first$-$out

Specific identification

$2-$b$.$ Of the three methods, which will result in the lowest income taxes?

Weighted average cost

First$-$in$,$ first$-$out

Specific identification