Question

In: Accounting

Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the month of August 2017 is available:

Inventory cost flow methods; periodic system

Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the month of August 2017 is available:


  Aug.1

    Inventory on hand—6,500 units; cost $7.90 each.

8

    Purchased 24,000 units for $6.9 each.

14

    Sold 18,000 units for $13.4 each.

18

    Purchased 13,000 units for $6.4 each.

25

    Sold 17,000 units for $12.4 each.

31

    Inventory on hand—8,500 units.


Required:

Determine the inventory balance Altira would report in its August 31, 2017, balance sheet and the cost of goods sold it would report in its August 2017 income statement using each of the following cost flow methods:

FIFO

Cost of Goods Available for sale

Cost of Goods Available Sold

Ending Inventory – Periodic FIFO

# of units

Cost per unit

Cost of goods available

# of units

Cost per unit

COGS

# of units in end inventory

Cost per unit

Ending inventory

Beginning Inventory










Purchases:










   August 8










   August 18










TOTAL










LIFO

Cost of Goods Available for sale

Cost of Goods Available for sale Periodic LIFO

Ending Inventory – Periodic LIFO


# of units

Cost per unit

Cost of goods available

# of units

Cost per unit

COGS

# of units in end inventory

Cost per unit

Ending inventory

Beginning Inventory










Purchases:










   August 8










   August 18










TOTAL










Average Cost

Cost of Goods Available for sale

Cost of Goods Available for sale periodic FIFO

Ending Inventory – Periodic FIFO   

Beginning Inventory










Purchases:










January 8










January 19










Total










Solutions

Expert Solution

FIFO Cost of Goods Available for sale Cost of goods sold Ending Inventory – Periodic FIFO
# of units Cost per unit Cost of goods available # of units Cost per unit COGS # of units in end inventory Cost per unit Ending inventory
Beginning Inventory 6500 $7.90 $51,350.00 6500 $7.90 $51,350.00 0 $7.90 $0.00
Purchases:
   August 8 24000 $6.90 $165,600.00 24000 $6.90 $165,600.00 0 $6.90 $0.00
   August 18 13000 $6.40 $83,200.00 4500 $6.40 $28,800.00 8500 $6.40 $54,400.00
TOTAL 43500 $300,150.00 35000 $245,750.00 8500 $54,400.00
LIFO Cost of Goods Available for sale Cost of goods sold Ending Inventory – Periodic LIFO
# of units Cost per unit Cost of goods available # of units Cost per unit COGS # of units in end inventory Cost per unit Ending inventory
Beginning Inventory 6500 $7.90 $51,350.00 0 $7.90 $0.00 6500 $7.90 $51,350.00
Purchases:
   August 8 24000 $6.90 $165,600.00 22000 $6.90 $151,800.00 2000 $6.90 $13,800.00
   August 18 13000 $6.40 $83,200.00 13000 $6.40 $83,200.00 0 $6.40 $0.00
TOTAL 43500 $300,150.00 35000 $235,000.00 8500 $65,150.00
Average Cost Cost of Goods Available for sale Cost of goods sold Ending Inventory – Average Cost
# of units Cost per unit Cost of goods available # of units Cost per unit COGS # of units in end inventory Cost per unit Ending inventory
Beginning Inventory 6500 $7.90 $51,350.00
Purchases:
   August 8 24000 $6.90 $165,600.00
   August 18 13000 $6.40 $83,200.00
TOTAL 43500 $6.90 $300,150.00 35000 $6.90 $241,500.00 8500 $6.90 $58,650.00

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