Gladstone Company tracks the number of units purchased and sold throughout each

Question

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. 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. Compute the amount of goods available for sale, ending inventory, and cost o 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.)

Explanation / Answer

Specific identification:

Ending inventory on may 1 ;

3100-(2/5of 2750)=2000@40

4400-(3/5of2750)=2750@55

3100@70

Cost of good sold on aug 31:

2000@40=80000

1200@70=84000

Total. =164000

Ending inventory in Aug31;

2750@55=151250

1900@70=133000

Total. =284250

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