Question

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-3, 100 units; cost $6.40 each. 8 Purchased 15,500 units for $6.60 each. 14 Sold 12,400 units for $13.10 each. 18 Purchased 9, 300 units for $6.70 each. 25 Sold 11,400 units for $12.10 each. 28 Purchased 5, 100 units for $5.80 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 per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory per unit Ending Inventory Beginning Inventory Purchases: August 8 August 18 August 28 Total

Answer 1

Periodic: FIFO Inventory Balance cost of Goods Available for sales Cost of Goods Sold cost of Goods Available for#of Units Cost Per Cost of Ending Inventory # of Goods Sold Units Cost Per Unit Unit #of Units sold Cost Per Unit sales Beginning inventory Purchases Aug-08 Aug-18 Aug-28 3100 6.40 19840 3100 6.40 19840 0 6.40 15500 102300 15500 6.60 6.60 102300 0 6.60 0 5200 6.70 27470 9300 6.70 62310 34840 4100 6.70 5100 5.80 29580 5.80 5100 5.80 29580 0 0 Totals 156980 57050 33000 214030 23800 9200 Periodic : LIFO Inventory Balance cost of Goods Available for sales Cost of Goods Sold cost of Goods Available for#of Units Cost Per Cost of # of Goods Sold Units Ending Inventory Cost Per Cost Per Unit sales Unit Unit #of Units sold Beginning inventory Purchases 6.40 3100 3100 19840 0 6.40 0 6.40 19840 Aug-08 Aug-18 Aug-28 15500 6.60 62040 6100 6.60 102300 9400 6,60 40260 6.70 9300 62310 9300 6.70 62310 0 6.70 0 5.80 5.80 29580 5100 29580 5.80 5100 0 0 Totals 153930 33000 214030 23800 9200 60100

Periodic: average Cost Inventory Balance Average Cost per unit cost of Goods Available for sales Cost of Goods Sold cost of Goods Average Cost Available for #of Units Cost per Cost of Average # of Goods Sold Units Ending Inventory #of Units sales unit sold per unit Beginning inventory Purchases Aug-08 Aug-18 Aug-28 3100 6.40 19840 15500 6.60 102300 9300 6.70 62310 5100 5.80 29580 Totals 154462 9200 6.49 59708 33000 6.49 214030 23800 6.49 Weighted Average Cost (214030/33000) 6.49