In: Accounting
Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:
Aug.1 | Inventory on hand—2,600 units; cost $5.90 each. |
8 | Purchased 13,000 units for $6.10 each. |
14 | Sold 10,400 units for $12.60 each. |
18 | Purchased 7,800 units for $6.20 each. |
25 | Sold 9,400 units for $11.60 each. |
28 | Purchased 4,600 units for $5.80 each. |
31 | Inventory on hand—8,200 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
LIFO
Average cost