Question

cam someone help me with the amount of goods available for sale, emding inventory, and cost of goods sold st December 31in each inventory costing merhods?

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. Units 3,400 Coat $ 50 Transactions 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 ($100 each) 4,700 65 (3,050) 3,40080 (3,500) 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.

Answer 1

	Number of Units	Unit cost	Total
Beginning inventory	3400	50	170000
Purchase -Jan 30	4700	65	305500
Purchase -May 1	3400	80	272000
Number of units /cost of goods available for sale	11500		747500
Total units sold	(6550)    [3050+3500]
Ending inventory	4950

Average cost per unit = Total cost of goods available for sale /units available for sale

                             = 747500 /11500

                               = $ 65 per unit

a)Under LIFO ,units acquired last are sold first so ending inventory is left from beginning inventory or initial purchase

Cost of goods available for sale :747500

Ending Inventory:

Date	Unit	Unit cost	Total
Beginning	3400	50	170000
Jan 30	1550	65	100750
Total units /cost of ending inventory	4950		270750

cost of goods sold =Cost of goods available for sale -Ending inventory

                = 747500-270750

                  = 476750

b)

weighted average cost method :

Cost of goods available for sale :747500

Ending inventory = Number of units* average cost

                 = 4950*65

                   = 321750

cost of goods sold =Cost of goods available for sale -Ending inventory

                = 747500-321750

                  = 425750

c)Under FIFO ,units acquired first are sold first so ending inventory is left last purchase .

Cost of goods available for sale :747500

Ending inventory:

Date	Unit	Unit cost	Total
may 1	3400	80	272000
Jan 30	1550	65	100750
Total units /cost of ending inventory	4950		372750

cost of goods sold =Cost of goods available for sale -Ending inventory

                = 747500-372750

                  = 374750

d)specific identification method:

Cost of goods available for sale :747500

	COST OF GOODS SOLD`			INVENTORY
Date	Unit	unit cost	Total	Unit	unit cost	total
March 14 sale
Beginning	3050*2/5= 1220	50	61000	3400-1220= 2180	50	109000
Jan 30	3050*3/5= 1830	65	118950	4700-1830=2870	65	186550
August 31 sale
Beginning	2180	50	109000	2870	65	186550
May 1	1320	80	105600	3400-1320= 2080	80	166400
Total			394550			186550+166400= 352950

cost of goods sold = 394550

Ending inventory = 352950