80.2K

Verified Solution

Link Copied!

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:

Aug.1	Inventory on hand2,000 units; cost $5.30 each.
8	Purchased 8,000 units for $5.50 each.
14	Sold 6,000 units for $12.00 each.
18	Purchased 6,000 units for $5.60 each.
25	Sold 7,000 units for $11.00 each.
28	Purchased 4,000 units for $5.80 each.
31	Inventory on hand7,000 units.

Required: Using calculations based on a periodic inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using each of the following cost flow methods.

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-2,000 units; cost $5.30 each. 8 Purchased 8,000 units for $5.50 each. 14 Sold 6,000 units for $12.00 each. 18 Purchased 6,000 units for $5.60 each. 25 Sold 7,000 units for $11.00 each. 28 Purchased 4,000 units for $5.80 each. 31 Inventory on hand7,000 units. Required: Using calculations based on a periodic inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 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, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income sta method. (Round cost per unit to 2 decimal places.) Cost of Goods Sold - Periodic FIFO Ending Inventory - Periodic FIFO FIFO Cost of Goods Available for Sale Cost of Goods # of units Cost per Available for unit Sale 2,000 $ 5.30 $ 10,600 # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory $ $ 5.30 $ 5.30 0 Beginning Inventory Purchases: 5.50 $ 5.50 5.50 O $ $ 5.60 $ 5.60 5.60 August 8 August 18 August 28 Total 8,000 $ 6,000 $ 4,000 $ 20,000 44,000 33,600 23,200 111,400 $ $ 5.80 5.80 $ 5.80 $ 0 0 0 0 FIFO LIFO Average Cost Determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the Average cost method. (Round cost per unit to 2 decimal places.) Cost of Goods Available for Sale Average Cost Unit Cost Cost of Goods Sold - Average Cost # of units Average Cost of Cost per sold Goods Sold Unit Cost of Goods Available for Sale $ 10,600 # of units Ending Inventory - Average Cost # of units Average Ending in ending Cost per inventory Inventory unit 2,000 $ 5.30 Beginning Inventory Purchases: August 8 August 18 August 28 Total 8,000 $ 5.50 6,000 $ 5.60 4,000 $ 5.80 20,000 44,000 33,600 23,200 111,400 $ 0 0

Answer & Explanation Solved by verified expert

See Answer