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-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. 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. Complete this question by entering your answers in the tabs below 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 Average cost method. (Round "Average Cost per Unit" to 2 decimal places.) Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Ending Inventory -Average Cost Ending Cost of Goods | # of units | Cost per Goods Available for | Average | Cost of.ln ending | Goods Sold # of units invent Average Cost Average cos( #Of units | Unit Cost # of units | sold Inventory Sale ni Beginning Inventory Purchases August 8 August 18 Tota

Explanation / Answer

Cost of goods available for sale Cost of goods sold - average cost Ending Inventory - average cost Average cost # of units unit cost Cost of goods # of units Average Cost of goods # of units Average Cost of goods available for sale cost per available for sale cost per available for sale unit unit Beginning inventory 2000           6.10 12200 Purchases: August 8 10000           5.50 55000 August 18 6000           5.00 30000 Total 18000 97200 15000           5.40 81000 3000           5.40 16200

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