Check my work Altira Corporation uses a periodic inventory system. The following
ID: 2568446 • Letter: C
Question
Check my work 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-2,000 units; cost $6.10 each 0.5 points 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 $11.00 each 31 Inventory on hand-3,000 units eBook 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. Hint Complete this question by entering your answers in the tabs below Print FIFO LIFO 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 LIFO method. (Round "Cost per Unit" to 2 decimal places.) Cost of Goods Available for Sale Cost of Goods Sold-Periodic LIFOEnding Inventory-Periodic LIFO Cost of Goods | # of units # of units LIFO Cost per Available r sold Cost per unit Cost per unit Ending Inventory Cost o # of units unit Goods Sold in ending Sale invento 2,000 6.10 12,200 Beginning Inventory Purchases 6.10S 2,000 S 6.10 12,200 August 8 August 18 10,000 5.50 6,000 500 18,000 55,000 30,000 $97,200 S 5.50 S 5.00 $ 5.50 $ 5.00 2,000 S 12,200 FIFO Average Cost >Explanation / Answer
Periodic FIFO DATE Cost of goods available for sale Cost of Goods sold Closing inventory Units Rate Amount Units Rate Amount Units Rate Amount Beginning Inventory 2000 6.1 12200 2000 6.1 12200 Purchase 8-Aug 10000 5.5 55000 10000 5.5 55000 18-Aug 6000 5 30000 3000 5 15000 3000 5 15000 TOTALS 18000 97200 15000 82,200 3000 15,000 Periodic LIFO DATE Cost of goods available for sale Cost of Goods sold Closing inventory Units Rate Amount Units Rate Amount Units Rate Amount Beginning Inventory 2000 6.1 12200 2000 6.1 12200 Purchase 8-Aug 10000 5.5 55000 9000 5.5 49500 1000 5.5 5500 18-Aug 6000 5 30000 6000 5 30000 TOTALS 18000 97200 15000 79,500 3000 17,700 Weighted Average DATE Cost of goods available for sale Cost of Goods sold Closing inventory Units Rate Amount Units Rate Amount Units Rate Amount Beginning Inventory 2000 6.1 12200 Purchase 8-Aug 10000 5.5 55000 18-Aug 6000 5 30000 TOTALS 18000 97200 15000 5.4 81,000 3000 5.4 16,200 Average Cost per unit = Total cost of goods available/ total units ( 97200 /18000 ) = $ 5.40 per unit