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 1,800 $ 50 Transactions during the year: a. Purchase, January 30 2,500 62 b. Sale, March 14 ($100 each) (1,450 ) c. Purchase, May 1 1,200 80 d. Sale, August 31 ($100 each) (1,900 ) 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: 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:

Beginning Inventory = 3,200 units

Units Purchased = 4,100 + 2,800 = 6,900 units

Units sold = 2,850 + 3,300 = 6,150 units

Ending inventory = 3,200 + 6,900 – 6,150

Ending inventory =3,950 units

Last-in, first out:

Ending Inventory = (750 * $69) + (3,200 * $55)

Ending Inventory = $51,750 + $176,000

Ending Inventory =$227,750

Cost of goods sold = (2,800 * $85) + (3,350 * $69)

Cost of goods sold =$238,000 + $231,150

Cost of goods sold =$469,150

First-in, first out:

Ending Inventory = (1,150 * $69) + (2,800 * $85)

Ending Inventory = $79,350 + $238,000

Ending Inventory =$317,350

Cost of goods sold = (3,200 * $55) + (2,950 * $69)

Cost of goods sold =$176,000 + $203,550

Cost of goods sold =$379,550

Weighted Average Cost:

Unit Price = Total Cost / Total Units

Unit Price = (3,200*55 + 4,100*69 + 2,800*85) / (3,200 + 4,100 + 2,800)

Unit Price = $69.00

Ending Inventory = 3,950*$69 = $272,550

Cost of Goods Sold = 6,150*$69 = $424,350

Specific Identification:

March 14 sale consist of 1,140 units (2/5 of 2,850) of beginning inventory and 1,710 units (3/5 of 2,850) of January 30 purchase.

August 31 sale consist of 2,060 units of beginning inventory and 1,240 units of May 1 purchase.

Cost of Goods Sold = 3,200 * $55 + 1,710 * $69 + 1,240 * $85

Cost of Goods Sold = $399,390

Ending Inventory consist of 2,390 units of January 30 and 1,560 units of May 1

Ending Inventory = 2,390 * $69 + 1,560 * $85

Ending Inventory = $297,510

answer; descriptive statistics;

answersecondary succession;