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.

Aug.1	Inventory on hand—2,800 units; cost $6.10 each.
8	Purchased 14,000 units for $6.30 each.
14	Sold 11,200 units for $12.80 each.
18	Purchased 8,400 units for $6.40 each.
25	Sold 10,200 units for $11.80 each.
28	Purchased 4,800 units for $5.80 each.
31	Inventory on hand—8,600 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.

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
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	2,800	$6.10	$17,080
Purchases:
August 8	14,000	$6.30	88,200
August 18	8,400	$6.40	53,760
August 28	4,800	$5.80	27,840
Total	30,000		$186,880	X	X	$0	X	X	$0

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Expert Solution

--Requirement asked:

Average Cost	Cost of Goods Available for Sale			Cost of Goods Sold - Average Cost			Ending Inventory - Average Cost
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	2,800	$ 6.10	$17,080
Purchases:
Aug-08	14,000	$ 6.30	$88,200
Aug-18	8,400	$ 6.40	$53,760
Aug-28	4,800	$ 5.80	$27,840
Total	30,000	$ 6.23 [186880/ 30000]	$186,880	21400	$ 6.23	$133,322	8,600	$ 6.23	$ 53,578.00

ekkarill92 answered 2 years ago

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