Question

Exercise 8-13 (Algo) Inventory cost flow methods; periodic system (LO8-1, 8-4) Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-2,900 units; cost $6.20 each. 8 Purchased 14,500 units for $6.40 each. 14 Sold 11,600 units for $12.90 each. 18 Purchased 8,700 units for $6.50 each. 25 Sold 10.600 units for $11.90 each. 28 Purchased 4,900 units for $5.80 each. 31 Inventory on hand-8, 800 units. Required: Using calculations based on a periodic inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using each of the following cost flow methods. Complete this question by entering your answers in the tabs below. FIFO LIFO Average Cost Determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the FIFO method. (Round "Cost per Unit" to 2 decimal places.) Cost of Goods Available for Sale Ending Inventory - Periodic FIFO FIFO Cost of Goods Sold - Periodic FIFO Cost Cost of Goods # of units sold per unit per unit Sold # of units Cost per unit Cost of Goods Available for Sale # of units in ending inventory Cost per unit Ending Inventory 2,900 $ 6.20 $ 17,980 2,900 $ 6.20 $ 17,980 $ 6.20 $ Beginning Inventory Purchases: August 8 August 18 August 28 Total 14,500 8,700 4,900 31,000 $ 6.40 $ 6.50 $ 5.80 $ 6.40 $ 6.50 92,800 56,550 28,420 195,750 $ 6.40 $ 6.50 $ 5.80 $ 2,900 $ 17,980 FIFO LIFOΣ

Answer 1

Answer

• Requirements asked

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	2900	$                   6.20	$                      17,980.00	2900	$                 6.20	$               17,980.00	0	$                   6.20	$                         -
Purchases:
08-Aug	14500	$                   6.40	$                      92,800.00	14500	$                 6.40	$               92,800.00	0	$                   6.40	$                         -
18-Aug	8700	$                   6.50	$                      56,550.00	4800	$                 6.50	$               31,200.00	3900	$                   6.50	$          25,350.00
28-Aug	4900	$                   5.80	$                      28,420.00	0	$                 5.80	$                              -	4900	$                   5.80	$          28,420.00
TOTAL	31000		$                    195,750.00	22200		$            141,980.00	8800		$          53,770.00
LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	2900	$                   6.20	$                      17,980.00	0	$                 6.20	$                              -	2900	$                   6.20	$          17,980.00
Purchases:
08-Aug	14500	$                   6.40	$                      92,800.00	8600	$                 6.40	$               55,040.00	5900	$                   6.40	$          37,760.00
18-Aug	8700	$                   6.50	$                      56,550.00	8700	$                 6.50	$               56,550.00	0	$                   6.50	$                         -
28-Aug	4900	$                  5.80	$                      28,420.00	4900	$                 5.80	$               28,420.00	0	$                   5.80	$                         -
TOTAL	31000		$                    195,750.00	22200		$            140,010.00	8800		$          55,740.00
Average Method	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	2900	$                   6.20	$                      17,980.00
Purchases:
08-Aug	14500	$                   6.40	$                      92,800.00
18-Aug	8700	$                   6.50	$                      56,550.00
28-Aug	4900	$                   5.80	$                      28,420.00
TOTAL	31000	$                6.32	$                    195,750.00	22200	$             6.3200	$            140,304.00	8800	$              6.3200	$          55,616.00