Question

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-3, 400 units; cost $6.70 each. 8 Purchased 17,000 units for $6.90 each. 14 Sold 13,600 units for $13.40 each. 18 Purchased 10, 200 units for $7.00 each. 25 Sold 12,600 units for $12.40 each. 28 Purchased 5,400 units for $5.80 each. 31 Inventory on hand-9,800 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 | # of units sold Cost Cost of Goods per unit Cos Sold # of units Cost per unit Cost of Goods Available for Sale # of units in ending *inventory Cost per unit Ending Inventory $ $ 0.00 $ 0.00 Beginning Inventory Purchases: August 8 August 18 August 28 Total $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 00$ 00$ $ FIFO LIFO >

Answer 1

1A		Cost of goods available for sale			Cost of goods sold - Periodic FIFO			Ending Inventory - Periodic FIFO
	FIFO	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory      (A) - (B)	Cost per unit	Ending Inventory
	Beginning Inventory	3,400	$         6.70	$     22,780	3,400	$       6.70	$     22,780	-	$       6.70	$              -
	Purchases:
	Aug-08	17,000	$         6.90	$ 1,17,300	17,000	$       6.90	$ 1,17,300	-	$       6.90	$              -
	Aug-18	10,200	$         7.00	$     71,400	5,800	$       7.00	$     40,600	4,400	$       7.00	$     30,800
	Aug-28	5,400	$         5.80	$     31,320		$       5.80	$              -	5,400	$       5.80	$     31,320
		36,000		$ 2,42,800	26,200		$ 1,80,680	9,800		$     62,120
1B		Cost of goods available for sale			Cost of goods sold - Periodic LIFO			Ending Inventory - Periodic LIFO
	LIFO	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory      (A) - (B)	Cost per unit	Ending Inventory
	Beginning Inventory	3,400	$         6.70	$     22,780	-	$       6.70	$              -	3,400	$       6.70	$     22,780
	Purchases:
	Aug-08	17,000	$         6.90	$ 1,17,300	10,600	$       6.90	$     73,140	6,400	$       6.90	$     44,160
	Aug-18	10,200	$         7.00	$     71,400	10,200	$       7.00	$     71,400	-	$       7.00	$              -
	Aug-28	5,400	$         5.80	$     31,320	5,400	$       5.80	$     31,320	-	$       5.80	$              -
		36,000		$ 2,42,800	26,200		$ 1,75,860	9,800		$     66,940
1C		Cost of goods available for sale			Cost of goods sold - Average Cost			Ending Inventory - Average Cost
	Average Cost	# of units	Cost per unit	Cost of goods available for sale	# of units sold	Cost per unit	Cost of goods sold	# of units in ending inventory	Cost per unit	Ending Inventory
	Beginning Inventory	3,400	$         6.70	$     22,780
	Purchases:
	Aug-08	17,000	$         6.90	$ 1,17,300
	Aug-18	10,200	$         7.00	$     71,400
	Aug-28	5,400	$         5.80	$     31,320
		36,000		$ 2,42,800	26,200	$       6.74	$ 1,76,588	9,800	$       6.74	$     66,052
	*Average Cost	=	Cost of goods available for sale / No. Of units
		=	242800/36000 units
		=	$                                                                                                                                                                             6.74