HW 7 Question 1

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 . Assuming that for Specific identification method (item id) the March 14 sale was selected two-fitths 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 Lastin, first out. b. Weighted average cost c. First-in, first-out d. Specific identification, assuming that the March 14 sale was selected two-fitths from the beginning inventory and three-fitiths from the putchase of January 30 . Assume that the sale of August 31 was seiected from the remainder of the beginning inventory. With the balance from the putchase of May 1 2-a. Of the fout methods. Which will result in the highest gross profit? 2-b. Of the four methods. which will result in the lowest income toxes? 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 under each of the following irventory 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-fitths from the beginning inventory and three fiftis 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. 2-0. 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. Compute the amount of goods avallable for sale, ending inventory, and cost of goods sold at December 31 under aach of the Iiventory costing methode. (hound intermediate calculations to 2 decimal places and final anewern to the nearest whale dallar amount.) Complete this question by entering your answers in the tabs below. of the four methods, which will result in the highest gross profit? Last-in, first-out d. Specific identification, assuming that the March 14 sale was selected two-fifths from the be the purchase of January 30 . Assume that the sale of August 31 was selected from the remaint 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. of the four methods, which will result in the lowest income taxes