Needing additional help. Need ending inventory amounts for A,B, and D. Gladstone

Question

Needing additional help. Need ending inventory amounts for A,B, and D.

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 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.)

Explanation / Answer

A) Last In First Out

B) Weighted Average

Note : First Avg rate = ( 2,400 X 50 + 3,950 X 62) / 6,350 = 57.46

Second Rate = ( 4,150X 57.46 + 2,650 X 80) / 6,800 = 66.24

D) Specific Identification

First sale = 2,200 X 2/5 = 880 & 2,200X 3 / 5 = 1,320

Second Sale = 1,520 & 1,180

Transaction Units Purchase Units sold Goods sold Ending Inventory Cost Ending Inventory Amount Cost of goods Sold Begining Inventory 2,400 2,400 50 120,000 Purchase January 30 3,950 (2,200) + (50) 1,700 62 105,400 139,500 Sold March 14 (2,200) Purchased 2,650 (2,650) 0 80 212,000 Sold 31 st August (2,700) Total 4,100 225,400 351,500

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