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 2016 is available Aug.1 Inventory on hand-3,500 units, cost $7.90 each 8 Purchased 13,000 units for $5.80 each 14 Sold 9,500 units for $12.30 each 18 Purchased 7,500 units for $5.30 each. 25 Sold 8,500 units for $11.30 each 31 Inventory on hand-6,000 units Required: 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. Cost of Goods Available for Sale Cost of Goods Sold- Periodic FIFO Ending Inventory- Periodic FIFO #of units cost per onve Cost ofGoods | # of units | Cost per cost o' in ending unit Goods Sold inventory FIFO Goods Cost per Available forsold Sale # of units Cost per Inventory unit 3,500 S 7.90$27,650 3,500S 7.90S 27,650 S 7.90$ Beginning Inventory Purchases 130oors 5 80| 75400 13,000 s 5801 75,400 7.500 S 5.30 39 750 7500 S 53039 750 $ 5.80 August 8 August 18 75,400 13,000 S 580 39,750 7,500$ 5.30 39.750 S 5.30 Total 24,000 S 142,800 24,000 $ 142,800

Explanation / Answer

FIFO

LIFO

Avearge method

# of Units cost P.U. Cost of goods available for sale # of units sold cost P.U. Cost of goods sold # of units in ending inventory cost P.U. Ending inventory Inventory on hand 3500 7.9 27650 3500 7.9 27650 0 7.9 0 ADD: purchases 8-Aug 13000 5.8 75400 13000 5.8 75400 0 5.8 0 18-Aug 7500 5.3 39750 1500 5.3 7950 6000 5.3 31800 Total 24000 142800 18000 83350 6000 31800

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