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—3,000 units; cost $6.50 each.
8	Purchased 12,000 units for $5.70 each.
14	Sold 9,000 units for $12.20 each.
18	Purchased 7,000 units for $5.20 each.
25	Sold 8,000 units for $11.20 each.
31	Inventory on hand—5,000 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 its August 2018 income statement using each of the following cost flow methods:

FIFO

Determine the inventory balance Altira would report in its August 31, 2018, balance sheet and the cost of goods sold it would report in its August 2018 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 Total 0 $0 0 $0 0 $0

LIFO

Determine the inventory balance Altira would report in its August 31, 2018, balance sheet and the cost of goods sold it would report in its August 2018 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 Total 0 $0 0 $0 0 $0

Average cost

Determine the inventory balance Altira would report in its August 31, 2018, balance sheet and the cost of goods sold it would report in its August 2018 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 Total 0 $0 $0 $0

Answer 1

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	3000	6.5	19500	3000	6.5	19500		$0.00	$0
Purchases:
8-Aug	12000	5.7	68400	12000	5.7	68400		$0.00	0
18-Aug	7000	5.2	36400	2000	5.2	10400	5000	5.2	26000
Total	22000		124300	17000		98300	5000		26000
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	3000	6.5	19500	0		0	3000	6.5	19500
Purchases:
8-Aug	12000	5.7	68400	10000	5.7	57000	2000	5.7	11400
18-Aug	7000	5.2	36400	7000	5.2	36400
Total	22000		124300	17000		93400	5000		30900
Average cost	Cost of Goods Available for Sale			Cost of Goods Sold - Average cost			Ending Inventory - Average cost
	# 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	3000	6.5	19500	0		0
Purchases:
8-Aug	12000	5.7	68400
18-Aug	7000	5.2	36400
Total	22000		124300	17000	5.65	96050	5000	5.65	28250