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-3,500 units; cost $7.60 each. 8 Purchased 15,000 units for $6.00 each. 14 Sold 10,500 units for $12.50 each. 18 Purchased 8,500 units for $5.50 each. 25 Sold 9,500 units for $11.50 each. 31 Inventory on hand-7,000 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. FIFO LIFO Average Cost 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 Sold - Periodic FIFO Ending Inventory - Periodic FIFO FIFO Cost of Goods Available for Sale Cost Cost of # of Goods per units Available unit for Sale 3.500 $ 7.60 $ 26,600 | # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory 0 Cost per unit Ending Inventory 3,500 $ 7.60 $ 26,600 $ 7.60 $ 0 Beginning Inventory Purchases: August 8 August 18 Total 9 0,000 15,000 8,500 27,000 $6.00 $5.50 90,000 46,750 163,350 15,000 $ 6.00 XS 5.50 18,500 X $ 5.50 $ $ 116,600 << FIFO LIFO > Red text Indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted

Answer 1

Altira Corporation FIFO Periodic Goods Available for Sales Date Units Price per unit Total Cost 1.8.2018 3500 7.6 26600 8.8.2018 15000 90000 18.8.2018 8500 46750 27000 163350 Clos.Stk. -7000 -38500 COGS 20000 124850 Closing Stock Date Units 18.8.2018 7000 Price per unit Total Cost 5.5 38500 LIFO Periodic Goods Available for Sales Date Units Price per unit Total Cost 1.8.2018 3500 26600 8.8.2018 15000 6 90000 18.8.2018 8500 46750 27000 163350 Clos.Stk. -7000 -47600 COGS 20000 115750

Closing Stock Date Units 1.8.2018 3500 8.8.2018 3500 7000 Price per unit Total Cost 7.6 26600 21000 47600 Weighted Average Goods Available for Sales Date Units Price per unit Total Cost 1.8.2018 3500 7.6 26600 8.8.2018 15000 90000 18.8.2018 8500 46750 27000 6.05 163350 Clos.Stk. -7000 -42350 COGS 20000 121000 5.5 Closing Stock Date Units 7000 Price per unit Total Cost 6.05 42350