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:

Inventory on hand—3,000 units

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.

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 statement using the FIFO method. (Round "Cost per Unit" to 2 decimal places.)

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 LIFO method. (Round "Cost per Unit" to 2 decimal places.)

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 Average cost method. (Round "Average Cost per Unit" to 2 decimal places.)

Aug.1 Inventory on hand—2,000 units; cost $6.10 each. 8 Purchased 10,000 units for $5.50 each. 14 Sold 8,000 units for $12.00 each. 18 Purchased 6,000 units for $5.00 each. 25 Sold 7,000 units for $11.00 each. 31

Inventory on hand—3,000 units

Explanation / Answer

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance 2000 6.1 12200 2000 6.1 12200 Purchasse 8-Aug 10000 5.5 55000 10000 55 55000 18-Aug 6000 5 30000 3000 5 15000 3000 5 15000 TOTAL 18000 97200 15000 82200 3000 23200 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance 2000 6.1 12200 2000 6.1 12200 Purchasse 8-Aug 10000 5.5 55000 9000 5.5 49500 1000 5.5 5500 18-Aug 6000 5 30000 6000 5 30000 TOTAL 18000 97200 15000 79500 3000 17200 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance 2000 6.1 12200 Purchasse 8-Aug 10000 5.5 55000 18-Aug 6000 5 30000 TOTAL 18000 5.4 97200 15000 5.4 81000 3000 5.4 16200

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