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PA7-1 (Algo) Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory System [LO 7-3] Gladstone Company tracks the number of units purchased

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PA7-1 (Algo) Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory System [LO 7-3] 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 (ftem 1d) the March 14 sale was selected two-fiths from the beginning inventory and three-fifths from the purchase of January 30 . Required: 1. Compute the amount of goods avallable 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-o. Ot 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? 1. Compute the amount of goods avallable 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-fitths 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. Of the four methods, which will result in the highest gross profit? 1. Compute the amount of goods avallable 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 fron the purchase of January 30 . Assume that the sale of August 31 was selected from the remainder of the beginning inventory, with t 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 incorne taxes? Complete this question by entering your answers in the tabs below. Compute the amount of goods avallable for sale, ending inwentory, 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 dotlar amount.) 1. Compute the amount of goods available for saic, 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 irventory, 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. of the four methods, which will result in the lowest income taxes

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