Question

Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the month of August 2018 is available: Aug.1 Inventory on hand-10,500 units: cost $8.40 each 8 Purchased 29,000 units for $7.40 each. 14 Sold 20, 500 units for $13.90 each. 18 Purchased 15, 500 units for $6.90 each 25 Sold 19, 500 units for $12.90 each. 31 Inventory on hand-15,000 units. Required: Determine the inventory balance Altira would report in its August 31, 2018, balance sheet and the cost of goods sold it would report in its August 2018 income statement using each of the following cost flow methods: Complete this question by entering your answers in the tabs below. Average Cost FIFO LIFO Determine the inventory balance Altira would report in its August 31, 2018, balance sheet and the cost of goods sold it would report in its August 2018 income statement using the FIFO method. (Round "Cost per Unit" to 2 decimal places.) Cost of Goods Available for Sale Cost of Goods Sold Periodic FIFO Ending Inventory- Periodic FIFO Cost of Goods EIEO # of units Cost per unit # of units Cost per Cost of Goods Sold Cost per Ending Inventory # ol units Available for in ending inventory sold unit unit Sale Beginning Inventory Purchases August 8 August 18 Total 0.00 0.00 S 0 $ 0.00 S 0.00 0 0.00 0.00 0 0 0 $ 0 0 LIFO

Answer 1

Periodic: FIFO e cost of Goods Available for sales Cost of Goods Sold Inventory Balance Cost of Cost Per cost of Goods # of Units Goods # of Cost Per Ending # of Units Unit Available for sales sold Cost Per Unit Sold Units Unit Inventory Beginning onventory 10500 10500 8.40 88200 10500 8.40 88200 08.40 Purchases Aug-08 29000 7.40 21460029500 7.40 218300 -500 7.40 -3700 Aug-18) 15500 6.90 106950 6. 90 0 15500 6.90 106950 Totals 55000 409750 40000 306500 15000 103250 Periodic : LIFO cost of Goods Available for sales Cost of Goods Sold Inventory Balance Cost of Cost Per cost of Goods # of Units Goods # of Cost Per Ending # of Units Unit Available for sales sold Cost Per Unit Sold Units Unit Beginning onventory 10500 8.40 0 10500 8.40 88200 Purchases Aug-08 29000 7.40 214600 24500 7.4 181300 4500 7.40 33300 Aug-18) 15500 6.90 106950 15500 6.9 106950 0 6.90 Totals 55000 409750 40000 288250 15000 121500 88200 8.4

Periodic : Weighted Average cost of Goods Available for sales Cost Per cost of Goods # of Units Unit Available for sales # of Units Cost of Goods Sold Cost of Cost Per Unit Goods Sold Inventory Balance Cost Per Ending Units Unit Inventory # of sold 8.40 88200 Beginning onventory 10500 Purchases Aug-08 29000 Aug-18 15500 Totals 55000 7.40 6.90 7.45 214600 106950 409750 40000 7.45 298000 15000 7.45 111750