133 points inventory during the month of August 2016 on hand 8 Purchased 10,000
ID: 2394853 • Letter: 1
Question
133 points inventory during the month of August 2016 on hand 8 Purchased 10,000 units for $5 50 each. 6,000 units for $5 00 each 25 Sold 7,000 units for $11.00 each 31 000 units Determine the inventory balance Altlira 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.) of Goods Balance Cost of c of units i Cost per tory unit #of cost per cost of |#Of units | Cost per Ending #of Cost per units unit unit Available for units sold unit Goods Sold in ending S 000 S 000 S S 000s August & ugust 18 0.00 0.00 0.00 0.00 0.00 for Sale Cost of Goods Sold August 14 Cost of Goods Sold -August 25 Cost of | #of # of units | Cost per | Cost of |#0f units | Cost per Cost of Cost per Type here to searchExplanation / Answer
(1) Perpetual FIFO :-
FIFO
Cost of Goods Available for Sale
Cost of Goods Sold-August 14
Cost of Goods Sold-August 25
Inventory Balance
# of units
Cost pu
Cost of Goods Available for Sale
# of units
Cost pu
Cost of Goods Sold
# of units
Cost pu
Cost of Goods Sold
# of units
Cost pu
Ending Inventory
Beginning Inventory
2000
6.1
12200
2000
6.1
12200
-
-
-
-
Purchases:-
August 8
10000
5.5
55000
6000
5.5
33000
4000
5.5
22000
-
-
August 18
6000
5
30000
-
-
3000
5
15000
3000
5
15000
Total
18000
97200
8000
45200
7000
37000
3000
15000
(2) Perpetual LIFO :-
LIFO
Cost of Goods Available for Sale
Cost of Goods Sold-August 14
Cost of Goods Sold-August 25
Inventory Balance
# of units
Cost pu
Cost of Goods Available for Sale
# of units
Cost pu
Cost of Goods Sold
# of units
Cost pu
Cost of Goods Sold
# of units
Cost pu
Ending Inventory
Beginning Inventory
2000
6.1
12200
-
-
-
-
2000
6.1
12200
Purchases:-
August 8
10000
5.5
55000
8000
5.5
44000
1000
5.5
5500
1000
5.5
5500
August 18
6000
5
30000
-
-
6000
5
30000
-
-
Total
18000
97200
8000
44000
7000
35500
3000
17700
(2) Perpetual Average:-
LIFO
Inventory on Hand
Cost of Goods Sold-August 14
Inventory Balance
# of units
Cost pu
Inventory Value
# of units
Avg cost pu
Cost of Goods Sold
# of units
Cost pu
Ending Inventory
Beginning Inventory
2000
6.1
12200
2000
6.1
12200
Purchase-Aug 8
10000
5.5
55000
10000
5.5
55000
Subtotal Average cost
12000
5.6
67200
Sale-Aug 14
8000
5.6
44800
Subtotal Average cost
4000
5.6
22400
Purchase-Aug 18
6000
5
30000
6000
5
30000
Subtotal Average cost
10000
5.24
52400
Sale-Aug 25
7000
5.24
36680
Total
18000
97200
15000
81480
3000
15720
(3) Average cost :-
FIFO
Cost of Goods Available for Sale
Cost of Goods Sold-Periodic FIFO
Ending Inventory-Periodic FIFO
# of units
Cost pu
Cost of Goods Available for Sale
# of units
Cost pu
Cost of Goods Sold-Periodic FIFO
# of units
Cost pu
Ending Inventory-Periodic FIFO
Beginning Inventory
10500
8.80
92400
41000 7.6 311600
15500 7.6 117800
Purchases:-
August 8
30000
7.50
225000
August 18
16000
7.00
112000
Total
56500
429400
41000
311600
15500
129900
Avg cost per unit = Total cost available for sale/N of units available for sale
= 429400/56500 = 7.6
FIFO
Cost of Goods Available for Sale
Cost of Goods Sold-August 14
Cost of Goods Sold-August 25
Inventory Balance
# of units
Cost pu
Cost of Goods Available for Sale
# of units
Cost pu
Cost of Goods Sold
# of units
Cost pu
Cost of Goods Sold
# of units
Cost pu
Ending Inventory
Beginning Inventory
2000
6.1
12200
2000
6.1
12200
-
-
-
-
Purchases:-
August 8
10000
5.5
55000
6000
5.5
33000
4000
5.5
22000
-
-
August 18
6000
5
30000
-
-
3000
5
15000
3000
5
15000
Total
18000
97200
8000
45200
7000
37000
3000
15000
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