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 Transactions Units Unit Cost Beginning inventory, January 1 Transactions during the year: a. Purchase, January 30 b. Sale, March 14 ($100 each) c. Purchase, May 1 d. Sale, August 31 (S100 each) 1,500 $40 2,900 1,600 52 (1,150) 70 (1,600) 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 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

Explanation / Answer

LIFO Date Particulars Units   Cost Amount COGS 1-Jan Beginning Inventory                                 1,500.00                         40.00                          60,000.00 30-Jan Purchase                                 2,900.00                         52.00                        150,800.00 1-May Purchase                                 1,600.00                         70.00                        112,000.00 Total available for sale                                 6,000.00                        322,800.00 COGS                                 2,750.00                        171,800.00 1600*70+1150*52 Ending Inventory                                   3,250.00                        151,000.00 1750*52+1500*40 Total available for sale                              322,800.00 COGS                              171,800.00 Ending Inventory                                151,000.00 Weighted Average Date Particulars Units   Cost Amount COGS 1-Jan Beginning Inventory                                 1,500.00                         40.00                          60,000.00 30-Jan Purchase                                 2,900.00                         52.00                        150,800.00 1-May Purchase                                 1,600.00                         70.00                        112,000.00 Total available for sale                                 6,000.00                         53.80                        322,800.00 COGS                                 2,750.00                         53.80                        147,950.00 2750*53.80 Ending Inventory                                   3,250.00                         53.80                        174,850.00 3250*53.80 Total available for sale                              322,800.00 COGS                              147,950.00 Ending Inventory                                174,850.00 FIFO Date Particulars Units   Cost Amount COGS 1-Jan Beginning Inventory                                 1,500.00                         40.00                          60,000.00 30-Jan Purchase                                 2,900.00                         52.00                        150,800.00 1-May Purchase                                 1,600.00                         70.00                        112,000.00 Total available for sale                                 6,000.00                        322,800.00 COGS                                 2,750.00                        125,000.00 1500*40+1250*52 Ending Inventory                                   3,250.00                        197,800.00 1650*52+1600*70 Total available for sale                              322,800.00 COGS                              125,000.00 Ending Inventory                                197,800.00 Specific identification Date Particulars Units   Cost Amount COGS 1-Jan Beginning Inventory                                 1,500.00                         40.00                          60,000.00 30-Jan Purchase                                 2,900.00                         52.00                        150,800.00 1-May Purchase                                 1,600.00                         70.00                        112,000.00 Total available for sale                                 6,000.00                        322,800.00 COGS                                 2,750.00                        135,080.00 460*40+690*52+1040*40+560*70 Ending Inventory                                   3,250.00                        187,720.00 Total available for sale                              322,800.00 COGS                              135,080.00 Ending Inventory                                187,720.00 2a FIFO 2b LIFO

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.