Question

Required information

Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory during the month of August 2018:

Aug.1	Inventory on hand—2,900 units; cost $7.00 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 $6.00 each.
25	Sold 10,600 units for $11.90 each.
31	Inventory on hand—3,900 units.

Required:
a. 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.)

b. 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 LIFO method. (Round "Cost per Unit" to 2 decimal places.)

c. 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 Average cost method. (Round "Average Cost per Unit" to 2 decimal places.)

Answer:

Perpetual FIFO

Cost of Goods Available for Sale

Cost of Goods Sold- August 14

Cost of Goods Sold-August 25

Inventory Balance

# of Units

Cost per Unit

Cost of Goods Available for Sale

# of Units Sold

Cost per Unit

Cost of Goods Sold

# of Units Sold

Cost per Unit

Cost of Goods Sold

# of Units in Ending Inventory

Cost per Unit

Ending Inventory

Beg. Inventory

Purchases:

August 8

August 18

Total

Perpetual LIFO

Cost of Goods Available for Sale

Cost of Goods Sold- August 14

Cost of Goods Sold-August 25

Inventory Balance

# of Units

Cost per Unit

Cost of Goods Available for Sale

# of Units Sold

Cost per Unit

Cost of Goods Sold

# of Units Sold

Cost per Unit

Cost of Goods Sold

# of Units in Ending Inventory

Cost per Unit

Ending Inventory

Beg. Inventory

Purchases:

August 8

August 18

Total

Perpetual Average	Inventory on Hand			Cost of Goods Sold			Inventory Balance
	# of Units	Cost per Unit	Inventory Value	# of Units	Average Cost per Unit	Cost Of Goods Sold	# of Units in Ending Inventory	Cost Per Unit	Ending Inventory
Beginning Inventory
Purchase- August 8
Sale- August 14
Purchase- August 18
Sale- August 25
Total

Answer 1

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FIFO
	Purchases			Cost of Goods Sold 14			Cost of Goods Sold 25			Ending Inventory
Date	Unit	Unit Cost	Total Cost	Unit	Unit Cost	Total Cost	Unit	Unit Cost	Total Cost	Unit	Unit Cost	Total Cost
Aug 1										2,900	$          7.00	$         20,300
Purchases:
Aug 8	14,500	$              6.40	$         92,800	2,900	$          7.00	$       20,300	5,800	$            6.40	$       37,120	3,900	$          6.00	$         23,400
Aug 18	8,700	$              6.00	$         52,200	8,700	$          6.40	$       55,680	4,800	$            6.00	$       28,800
Cost of Godos Sold				11,600		$       75,980			$       65,920
Ending Inventory										3,900		$         23,400
LIFO
	Purchases			Cost of Goods Sold						Ending Inventory
Date	Unit	Unit Cost	Total Cost	Unit	Unit Cost	Total Cost				Unit	Unit Cost	Total Cost
Aug 1										2,900	$          7.00	$         20,300
Purchases:
Aug 8	14,500	$              6.40	$         92,800	8,700	$          6.00	$       52,200	10,600	$            6.40	$       67,840	2,900	$          7.00	$         20,300
Aug 18	8,700	$              6.00	$         52,200	2,900	$          6.40	$       18,560				1,000	$          6.40	$            6,400
Cost of Godos Sold				11,600		$       70,760	10,600		$       67,840
Ending Inventory										3,900		$         26,700
Weighted Average
	Purchases			Cost of Goods Sold						Ending Inventory
Date	Unit	Unit Cost	Total Cost	Unit	Unit Cost	Total Cost				Unit	Unit Cost	Total Cost
Aug 1										2,900	$        7.000	$         20,300
Aug 8	14,500	$              6.40	$         92,800							17,400	$        6.500	$       113,100
Aug 14				11,600	$        6.500	$       75,400				5,800	$        6.500	$         37,700
Aug 18	8,700	$              6.00	$         52,200							14,500	$        6.200	$         89,900
Aug 18				10,600	$        6.200	$       65,720				3,900	$        6.200	$         24,180
Cost of Godos Sold				22,200		$     141,120
Ending Inventory										3,900		$         24,180