70.2K

Verified Solution

Link Copied!

Please help explain.

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

Aug.1	Inventory on hand3,100 units; cost $6.40 each.
8	Purchased 15,500 units for $6.60 each.
14	Sold 12,400 units for $13.10 each.
18	Purchased 9,300 units for $6.70 each.
25	Sold 11,400 units for $12.10 each.
28	Purchased 5,100 units for $5.80 each.
31	Inventory on hand9,200 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.

1. 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 FIFO method. (Round "Cost per Unit" to 2 decimal places.)

FIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Ending Inventory - Periodic FIFO # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning Inventory $0.00 $0.00 $0 Purchases: August 8 $0.00 $0.00 0 August 18 $0.00 $0.00 August 28 $0.00 Total 0 $0 0 $0 0 $0

2. 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 LIFO method. (Round "Cost per Unit" to 2 decimal places.)

LIFO Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Ending Inventory - Periodic LIFO # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning Inventory $0.00 $0 $0.00 Purchases: August 8 $0.00 $0.00 August 18 $0.00 $0.00 0 August 28 $0.00 Total 0 $0 0 $0 0 $0

3. 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 "Average Cost per Unit" to 2 decimal places.)

Average Cost Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Ending Inventory - Average Cost # of units Unit Cost Cost of Goods Available for Sale # of units sold Average Cost per Unit Cost of Goods Sold # of units in ending inventory Average Cost per unit Ending Inventory Beginning Inventory Purchases: August 8 August 18 August 28 Total 0 $0 $0 $0

Answer & Explanation Solved by verified expert

See Answer