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 ts August 2018 income statement using each of the following cost flow methods.

Explanation / Answer

Cost of Goods Available for Sale Cost of Goods Sold -Periodic FIFO Ending Inventory - Periodic FIFO Units Unit cost Total Units Unit cost Total Units Unit cost Total Beginning Inventory 2000 6.1 12200 2000 6.1 12200 Purchases: Aug-08 10000 5.5 55000 10000 5.5 55000 Aug-18 6000 5 30000 3000 5 15000 3000 5 15000 Total 18000 97200 15000 82200 3000 15000 Cost of Goods Available for Sale Cost of Goods Sold -Periodic LIFO Ending Inventory - Periodic LIFO Units Unit cost Total Units Unit cost Total Units Unit cost Total Beginning Inventory 2000 6.1 12200 2000 6.1 12200 Purchases: Aug-08 10000 5.5 55000 9000 5.5 49500 1000 5.5 5500 Aug-18 6000 5 30000 3000 5 15000 Total 18000 97200 12000 64500 3000 17700 Cost of Goods Available for Sale Cost of Goods Sold -Periodic Average cost Ending Inventory - Periodic Average cost Units Unit cost Total Units Unit cost Total Units Unit cost Total Beginning Inventory 2000 6.1 12200 Purchases: Aug-08 10000 5.5 55000 Aug-18 6000 5 30000 Total 18000 97200 15000 5.4 81000 3000 5.4 16200

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.