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-6,500 units; cost $7.90 each 8 Purchased 24,000 units for $6.90 each 14 Sold 18,000 units for $13.40 each. 18 Purchased 13,000 units for $6.40 each 25 Sold 17,000 units for $12.40 each. 31 Inventory on hand-8,500 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 Answer is complete but not entirely correct. 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 statement using the Average cost method. (Round "Average Cost per Unit" to 2 decimal places.) ost of Goods Sold -Average Cost of Goods Available for Sale Ending Inventory - Average Cost Cost Average Cost Cost of Goods AverageCost of #of units Unit Cost Available for #of units sold Goods Sold # of units in ending inventory Average Cost per unit Ending Inventory Cost per Unit Sale Beginning Inventory$7.90 Purchases 51,350 August 8 August 18 24,000 165,600 13,000 6.40 43,500 83,200 Total 300,150 8,500 6.90 8,500 6.90 58,650 KLIFO Average Cost

Explanation / Answer

Answer:-

Average Cost Method Goods purchased Cost of goods sold Inventory balance Date # of units Cost per unit # of units sold Cost per unit Cost of goods sold # of units Cost per unit Inventory balance Aug-01 6500 7.9 51350 Aug-08 24000 6.9 6500 7.9 51350 24000 6.9 165600 Average cost 30500 7.11 216950 Aug-14 18000 7.11 127980 12500 7.11 88875 Aug-18 13000 6.4 12500 7.11 88875 13000 6.40 83200 Average cost 25500 6.75 172075 Aug-25 17000 6.75 114750 8500 6.75 57375 Totals 35000 242730

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