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-3,60 unitsi cost $7.60 each 8 Purchased 23,00e units for $6.80 each. 14 Sold 17,880 units for $13.36 ach. 18 Punchased 12,590 units for $6.30 each. 25 Sold 16,830 units for $12.30 each. 31 Inventory on hand-5,see 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 irn its August 2018 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. 2018, balance sheet and the cost of goods sold it would report in its August 2018 income the FIFO method. (Round "Cost per Unit decimal places Cost of Goods Avalilable for Sale Cost of Goods Sold-Perloalc FIFO En s of units Cost per nding Inventory Periodic FIFO Ending unit Inventory Cost of Goods a ofuits Cost porCost Cost per Available for d of units s Sold n ending Cost nventory sold Sale Beginning Inventory Purchases 3000? S 7601 S 22 800 s7 60 760 August 8 August 18 23,000S 680 12.50 38 500 156,400 78,750 S 6.80 6.30 s 680 5.500630 34.650 Total LIFO

Explanation / Answer

1.

According to FIFO - Cost of goods sold at end Equals $ 223300 for 33000 units

Closing Inventory = 5500 units @ 6.3 = $ 34650

2.

According to LIFO - Cost of goods sold at end Equals $ 218150 for 33000 units

Closing Inventory = 5500 units out of which 2500@6.8 and 3000@7.6 = $ 39800

3.

According to Average Cost => Cost of goods sold at end Equals $ 221936 for 33000 units

Closing Inventory = 5500 units @6.55 = $ 36014

FIFO Cost of goods available for sale Cost of Goods Sold-Periodic FIFO Ending Inventory-Periodic FIFO No. of Units Cost per Unit Cost of Goods Available for Sale No. of units sold Cost per unit Cost of Goods Sold No. of units in ending inventory Cost per unit Ending Inventory Beginning Inventory 3000 $7.6 $ 22800 3000 7.6 22800 Purchase August 8 23000 $6.8 $ 156400 3000 7.6 22800 23000 6.8 156400 Sale August 14 3000 7.6 22800 14000 6.8 95200 9000 6.8 61200 Purchase August 18 12500 $6.3 $ 78750 9000 6.8 61200 12500 6.3 78750 Sale August 25 9000 6.8 61200 7000 6.3 44100 5500 6.3 34650 TOTAL 38500 $ 257950 33000 223300

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