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 2016 is available

Determine the inventory balance Altira would report in its August 31, 2016, balance sheet and the cost of goods sold it would report in its August 2016 income statement using each of the following cost flow methods: (Round "Average Cost per Unit" to 2 decimal places.) FIFO, LIFO, Average Cost (Cost of Goods Available for sale, Cost of Goods Sold, Ending inventory).

Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the month of August 2016 is available

Explanation / Answer

Ending Inventory: Beginning Inventory 8500 Purchases 27000+14500 41500 Less: Sales 19500+18500 38000 Ending Inventory 12000 FIFO: Cost of Goods Available For Sale Beginning Inventory 8500*8.7 73950 Purchase as on Aug 8 27000*7.2 194400 Purchase as on Aug 18 14500*6.7 97150 365500 Value of Ending Inventory: Cost of recently purchased inventory 12000*6.7 80400 Cost of Goods Sold: Cost of Goods Available for sale 365500 Less: Ending Inventory 80400 285100 LIFO: Cost of Goods Available For Sale Beginning Inventory 8500*8.7 73950 Purchase as on Aug 8 27000*7.2 194400 Purchase as on Aug 18 14500*6.7 97150 365500 Value of Ending Inventory: Cost of beginning Inventory 8500*8.7 80400 Cost of first purchased inventory (12000-8500)*7.2 25200 105600 Cost of Goods Sold: Cost of Goods Available for sale 365500 Less: Ending Inventory 105600 259900 Average Cost: Cost of Goods Available For Sale Beginning Inventory 8500*8.7 73950 Purchase as on Aug 8 27000*7.2 194400 Purchase as on Aug 18 14500*6.7 97150 365500 Average Cost: Cost of Goods Available for sale 365500 Goods Available for sale 8500+27000+14500 50000 Average Cost 7.31 7.31 Ending Inventory 12000*7.31 87720 Cost of Goods Sold: Cost of Goods Available for sale 365500 Less: Ending Inventory 87720 277780

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