PA7-1 (Algo) Analyzing the Effects of Three 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. Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase, January 30 Units Unit Cost 3,100 $ 40 4,400 55 b. Sale, March 14 ($100 each) (2,750) c. Purchase, May 1 3,100 70 d. Sale, August 31 ($100 each) (3,200) 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. First-in, first-out. c. Specific identification, assuming that the March 14 sale was selected two-fifths from the beginning inventory and three-fifths the purchase of January 30. Assume that the sale of August 31 was selected from the remainder of the beginning inventory, wit balance from the purchase of May 1. 2-a. Of the three methods, which will result in the highest gross profit? 2-b. Of the three methods, which will result in the lowest income taxes? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B 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.) a. Last-in, first-out b. First-in, first-out c. Specific identification Amount of Goods Available for Sale Ending Inventory Cost of Goods Sold Req 1 Req 2A >