Please fill in empty data cells for this assignment. Alira Corporation uses a pe
ID: 2563755 • Letter: P
Question
Please fill in empty data cells for this assignment.
Alira Corporation uses a perpetual irnventory system The following tansactions affected it marchandse inventory during the month of August 2016: Aug 1 Inventory on hand 2,000 units, cosl 56. 10 each 8 Purchased 10,000 units for $5.50 each. 14 Sold 8.000 units for $12 00 each 18 Purchased 6,000 units for $5.00 each 25 Sold 7,000 units for $1100 each. 31 Inventory on hand-3.000 units Required: Determine the inventory balance Alsira would report in ihs August 31, 2016, balance sheet and the cost of goods sold t would report in its August 2016 income statement using each of the follovwing cost fnow methods: (Round "Average Cost per Unie to 2 decimal places ) Cost of Goods Available for Sale Cost of Goods Sold August 14 Cost of Goods Sold August 24 Inventory Balance Cost of # of Goodsunits # of units l cost per | in ending ost per Cost of # of units Cost perCost of #of |Cost per | asoldutGoods Sold sold nitInventory S6.10 inventory l unit Sale Beg. Inventory 2000 s 610 $ 12200 2000 $ 610 S 12.200 $6.10$ August 8 August 18 10.000 6,000 18,000 55,000 30,000 5.50 5.00 5.50 5.00 5.50 5.00 5.00 Total S 97,200 2,000 S 12200Explanation / Answer
Answer
FIFO
Cost of Goods available for sale
Cost of Goods Sold
Ending Inventory
Units
Cost per unit
Cost of Goods Available for sale
Units Sold
Cost per unit
Cost of Goods Sold
Units
Cost per unit
Ending Inventory
Beginning Inventory
2000
6.1
12200
2000
6.1
12200
0
6.1
0
Purchases:
0
0
0
Aug-08
10000
5.5
55000
10000
5.5
55000
0
5.5
0
Aug-18
6000
5
30000
3000
5
15000
3000
5
15000
0
0
0
0
0
Total
18000
97200
15000
82200
3000
15000
Cost of Goods available for sale
Cost of Goods Sold
Ending Inventory
Units
Cost per unit
Cost of Goods Available for sale
Units Sold
Cost per unit
Cost of Goods Sold
Units
Cost per unit
Ending Inventory
Beginning Inventory
2000
6.1
12200
0
6.1
0
2000
6.1
12200
Purchases:
0
0
0
Aug-08
10000
5.5
55000
9000
5.5
49500
1000
5.5
5500
Aug-18
6000
5
30000
6000
5
30000
0
5
0
0
0
0
0
0
Total
18000
97200
15000
79500
3000
17700
Inventory In Hand
Cost of Goods Sold
Closing Inventory
No. of units
Cost per unit
Inventory Value
Units sold
Average cost per unit
Cost of goods sold
Units in Ending Inventory
Cost per unit
Ending Inventory Value
Beginning Inventory
2000
6.1
12200
2000
6.1
12200
Purchase Aug 8
10000
5.5
55000
10000
5.5
55000
Subtotal Average Cost
12000
5.6
67200
12000
5.6
67200
Sale Aug 14
8000
5.6
44800
Subtotal Average Cost
4000
5.6
22400
Purchase Aug 18
6000
5
30000
Subtotal Average cost
10000
5.24
52400
10000
5.24
52400
Sale-Aug 25
7000
5.24
36680
3000
5.24
15720
TOTAL
18000
97200
15000
81480
3000
5.24
15720
FIFO
Cost of Goods available for sale
Cost of Goods Sold
Ending Inventory
Units
Cost per unit
Cost of Goods Available for sale
Units Sold
Cost per unit
Cost of Goods Sold
Units
Cost per unit
Ending Inventory
Beginning Inventory
2000
6.1
12200
2000
6.1
12200
0
6.1
0
Purchases:
0
0
0
Aug-08
10000
5.5
55000
10000
5.5
55000
0
5.5
0
Aug-18
6000
5
30000
3000
5
15000
3000
5
15000
0
0
0
0
0
Total
18000
97200
15000
82200
3000
15000