Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me with this question! Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing

Please help me with this question!
image text in transcribed
image text in transcribed
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 Units 2,200 Unit Cost $ 55 Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase, January 30 b. Sale, March 14 ($109 each) c. Purchase, May 1 d. Sale, August 31 ($100 each) 65 3,350 (1,850) 2,050 (2,380) 85 Assuming that for Specific identification method (item 1d) 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 Available for Sale Ending Inventory Cost of Goods Sold a. Last-in, first-out b. Weighted average cost c. First-in, first-out d. Specific identification 2-o. Of the four methods, which will result in the highest gross profit? Amount of Cand Available for Sale eling met Sold a. Last-in, first-out b. Weighted average cost c. First-in, first-out d. Specific identification 2-a. Of the four methods, which will result in the highest gross profit? Last-in, first-out Weighted average cost First-in, first-out Specific identification 2-b. Of the four methods, which will result in the lowest income taxes? Last-in, first-out Weighted average cost First-in, first-out Specific identification

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems

Authors: Marshall B. Romney

8th Edition

0201357216, 9780201357219

More Books

Students also viewed these Accounting questions

Question

What penalty (if any) should Foster receive?

Answered: 1 week ago

Question

=+1. What is the schedule for this project?

Answered: 1 week ago