Question

Altra Corporation provides the following information related to its merchandise inventory dunng the month of August 2021 Aug.1 Inventory on hand-3, 100 units; cost $6.00 each. 8 Purchased 15,500 units for $6.60 each. 14 Sold 12,400 units for $13.10 each. 18 Purchased 9,389 units for $6.70 each. 25 Sold 11,400 units for $12.10 each 28 Purchased 5,109 units for $5.se each 31 Inventory on hand 9, 200 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 Cost of Goods Sold. Periodic FIFO Ending Inventory - Periodic FIFO FIFO of units Cost Cost of Goods Available for Sale of units sold Cost per unit Cost of Goods Sold # of units in ending inventory per unit Cost Ending per unit Inventory $0.00 $ $ 0.00 0 a Beginning Inventory Purchases: August 8 August 18 August 28 $ 0.00 5 000 $ 0.00 $ 0.00 $ 0.00 0 $ 0 Total 0 $ LIFO >

Answer 1

Total unis sold=12400+11400=23800 units
Under FIFO method,Goods purchased first are sold first.
Periodic FIFO				Cost of goods available for sale	Cost of goods sold-Periodic FIFO	Ending inventory-Periodic FIFO
				# 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				3100	6.4	19840	3100	6.4	19840
Purchases:
Aug 8.				15500	6.6	102300	15500	6.6	102300
Aug 18.				9300	6.7	62310	5200	6.7	34840	4100	6.7	27470
							(23800-3100-15500)			(9300-5200)
Aug 28.				5100	5.8	29580				5100	5.8	29580
Total				33000		214030	23800		156980	9200		57050
Inventory balance=$ 57050
Cost of goods sold=$ 156980
Under LIFO method,Goods purchased last are sold first.
Periodic LIFO				Cost of goods available for sale	Cost of goods sold-Periodic LIFO	Ending inventory-Periodic LIFO
				# 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				3100	6.4	19840				3100	6.4	19840
Purchases:
Aug 8.				15500	6.6	102300	9400	6.6	62040	6100	6.6	40260
							(23800-5100-9300)			(15500-9400)
Aug 18.				9300	6.7	62310	9300	6.7	62310	(390-380)
Aug 28.				5100	5.8	29580	5100	5.8	29580
Total				33000		214030	23800		153930	9200		60100
Inventory balance=$ 60100
Cost of goods sold=$ 153930
Under average cost method,Inventory and cost of goods sold valued at average cost per unit
Average cost per unit=Total cost of goods available for sale/Total units available for sale=214030/33000=$ 6.49 per unit
Average cost				Cost of goods available for sale	Cost of goods sold-Average cost	Ending inventory-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				3100	6.4	19840
Purchases:
Aug 8.				15500	6.6	102300	23800	6.49	154462	9200	6.49	59708
Aug 18.				9300	6.7	62310
Aug 28.				5100	5.8	29580
Total				33000		214030	23800		154462	9200		59708
Inventory balance=$ 59708
Cost of goods sold=$ 154462