Altira Corporation uses a periodic inventory system. The following information r

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-9,500 units; cost $8.20 each 8 Purchased 28,000 units for $7.30 each 14 Sold 20,000 units for $13.80 each 18 Purchased 15,000 units for $6.80 each. 25 Sold 19,000 units for $12.80 each 31 Inventory on hand-13,500 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:

Explanation / Answer

Periodic-FIFO:

Periodic-LIFO:

Periodic-Average cost

FIFO Cost of goods available for sale Cost of goods sold - FIFO Ending inventory-FIFO # of units Unit cost Cost of goods available for sale # of units sold Unit cost Cost of goods sold # of units in ending inventory Unit cost Ending inventory Beginning inventory 9500 8.20 77900 9500 8.20 77900 Purchases August 8 28000 7.30 204400 28000 7.30 204400 August 18 15000 6.80 102000 1500 6.80 10200 13500 6.80 91800 Total 52500 384300 39000 292500 13500 91800

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.