Exercise 8-13 Inventory cost flow methods; periodic system [LO8-1, 8-4] Altira C

Question

Exercise 8-13 Inventory cost flow methods; periodic system [LO8-1, 8-4] 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-3,000 units; cost $7.60 each 8 Purchased 23,000 units for $6.80 each. 14 sold 17,000 units for $13.30 each 18 Purchased 12, 500 units for $6.30 each. 25 Sold 16,000 units for $12.30 each 31 Inventory on hand-5, 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 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 FIFO method. (Round "Cost per Unit" to 2 decimal places.) Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Ending Inventory - Periodic FIFO # of units | Cost Cost of per unit # of units in ending inventory FIFO Available for Sale l#of units | Cost per Cost of Goods Sold | Cost per Ending unit unit Inventory $ 0.00 $ Beginning Inventory Purchases $ 0.00 August 8 August 18 $ 0.00 $ 0.00 $ 0.00 $ 0.00 Total FIFO LIFO >

Explanation / Answer

Units available for sale:

Aug 1 3000 units * $7.60 = $22800

8 23000 units * $6.80 = $156400

18 12500 units * $6.30 = $78750

38500 units $257950

FIFO:

Cost of goods sold:

3000 units * $7.60 $22800

23000 units * $6.80 $156400

7000 units * $6.30 $44100

33000 units $223300

Ending inventory:

5500 units * $6.30 = $34650.

LIFO:

Cost of goods sold:

12500 * $6.30 $78750

20500 * $6.80 $139400

$218150

Ending inventory:

3000 units * $7.60 $22800

2500 units * $6.80 $17000

$39800.

Average cost:

Average cost per unit = $257950 / 38500 units

= $6.70

Cost of goods sold:

33000 units * $6.70 = $221100

Ending inventory:

5500 units * $6.70 = $36850.

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