PA7-4 (Supplement 7A) Analyzing the Effects of the LIFO Inventory Method in a Perpetual Inventory System [LO 7-S1] Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the time of each sale, as if it uses a perpetual inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31 Units Unit Cost 1,750 $50 Beginning inventory, January1 Transactions during a. Purchase, January 30 b. Sale, March 14 (S100 each) c. Purchase, May 1 d. Sale, August 31 ($100 each) 2,450 62 (1,440) 1,190 80 (1,850) 1. Calculate the cost of goods sold and ending inventory for Gladstone Company assuming it applies the LIFO cost method perpetually at the time of each sale Cost of Goods Sold Ending Inventory 2. Does the use of a perpetual inventory system result in a higher or lower cost of goods sold than the periodic inventory system when costs are rising? O Higher Cost of Goods Sold Lower Cost of Goods Sold