Question

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-3,300 units; cost $6.60 each. 8 Purchased 16,500 units for $6.80 each. 14 Sold 13,200 units for $13.30 each. 18 Purchased 9,900 units for $6.90 each. 25 Sold 12, 200 units for $12.30 each. 28 Purchased 5,300 units for $5.80 each. 31 Inventory on hand-9,600 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.

Answer 1

	Cost of goods available for sale			Cost of goods sold-LIFO			Ending inventory-LIFO
	# of units	Cost per unit	Total	# of units	Cost per unit	Total	# of units	Cost per unit	Total
Beginning inventory	3300	6.60	21780	0	6.60	0	3300	6.60	21780
Purchases:
August 8	16500	6.80	112200	10200	6.80	69360	6300	6.80	42840
August 18	9900	6.90	68310	9900	6.90	68310	0	6.90	0
August 28	5300	5.80	30740	5300	5.80	30740	0	5.80	0
Total	35000		233030	25400		168410	9600		64620