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Gladstone Limited 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, 2014.

TransactionsUnitsUnit CostBeginning inventory, January 1, 20141,800$6.00Transactions during 2014:a.Purchase, January 302,0008.00b.Sale, March 14 ($12 each)(1,300)c.Purchase, May 11,20010.00d.Sale, August 31 ($12 each)(1,500)

Required:1.Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31, 2014, under each of the following inventory costing methods. For Specific identification, assuming that the March 14, 2014, sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30, 2014. Assume that the sale of August 31, 2014, was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1, 2014.(Do not round Weighted average cost per unit. Round your final answers to the nearest dollar amount.)

2-a.Of the three methods, which will result in the highest gross profit?Weighted average costFirst-in, first-outSpecific identification

2-b.Of the three methods, which will result in the lowest income taxes?Weighted averageFirst-in-first-outSpecific identification

PA?-1 Analyzing the Effects of Three Alternative Inventory Methods in a Periodic Inventory System [L03] Gladstone Limited tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the and 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, Decernber31, 2014. Transactions Unih Unit Duet Beginning inventory, January 1, 2014 1,300 $ 6.00 Transactions during 201-1: a. Purchase, January 30 2,000 3.00 b. Sale, March 14 [$12 each] [1,300] c. Purchase, May 1 1,200 10.00 0'. Sale, August 31 [$12 each} [1.500] Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31, 2014, under each of the following inventory cosling melhods. For Specic identication, assuming that the March 14, 2014, sale was selected tworms from the beginning inventory and threefths from the purchase of January 30, 2014. Assume that the sale of August 31, 2014, was selected from the remainder of the beginning inventory, with lhe balance from the purchase of May 1, 2014. [Do not round Weighted average cost per unit. Round your final answers to the nearest dollar amount.) Weighted average cost. a _ _