Question

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

Aug.1	Inventory on hand—3,600 units; cost $6.90 each.
8	Purchased 18,000 units for $7.10 each.
14	Sold 14,400 units for $13.60 each.
18	Purchased 10,800 units for $7.20 each.
25	Sold 13,400 units for $12.60 each.
28	Purchased 5,600 units for $5.80 each.
31	Inventory on hand—10,200 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.

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 3,600 $6.90 $24,840 $6.90 $6.90 $0 Purchases: August 8 18,000 $7.10 127,800 $7.10 $7.10 0 August 18 10,800 $7.20 77,760 $7.20 $7.20 August 28 5,600 $5.80 32,480 $5.80 Total 38,000 $262,880 0 $0 0 $0

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 3,600 $6.90 $24,840 $6.90 $0 3,600 $6.90 $24,840 Purchases: August 8 18,000 $7.10 127,800 $7.10 $7.10 August 18 10,800 $7.20 77,760 10,800 $7.20 77,760 $7.20 0 August 28 5,600 $5.80 32,480 5,600 $5.80 32,480 Total 38,000 $262,880 16,400 $77,760 3,600 $24,840

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 3,600 $6.90 $24,840 Purchases: August 8 18,000 $7.10 127,800 August 18 10,800 $7.20 77,760 August 28 5,600 $5.80 32,480 Total 38,000 $262,880 $0 $0

Answer 1