PA7-1 Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory System [LO 7-3]

PA7-1 Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory System (LO7 Ints 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 a the end of the annual accounting period, December 31. Book Print Units 1300 tini Cost 40 ferences Trencacions Beginning inventory January Theriacions during the year Perch e ry 30 & Sale, March 14 o ch Purchas, May 1 Sale, August 31 (100 each) 6 2.000 Case) 700 (1500) Assuming that for Specific identification method (item 1d) the March 14 sale was selected two-fifths from the beginning inventory and three-fifth 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. 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: (Round Intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount Amount of Goods Available for Sale Ending Inventor Cost of Goods Sold 4. k Purcham, January 30 Sale, Marck 14 (100 each) Purcham, May Sale, Rypust 31 (100 each) (se) 700 2 Assuming that for Specific identification method item id) 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. 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: (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Amount of Goods Ending Inventory Cost of Goods Sold Available for Sale $ a. Last-in, first-out b. Weighted average cost c. First-in, first-out d. Specific identification $ $ $ 228,000 228,000 228,000 228,000 $ $ $ 67,000 88,350 107,000 $ $ $ 161,000 139,650 121,000