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Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand2,000 units; cost $5.30 each.

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:

Aug.1 Inventory on hand2,000 units; cost $5.30 each.
8 Purchased 8,000 units for $5.50 each.
14 Sold 6,000 units for $12.00 each.
18 Purchased 6,000 units for $5.60 each.
25 Sold 7,000 units for $11.00 each.
28 Purchased 4,000 units for $5.80 each.
31 Inventory on hand7,000 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.

  • FIFO
  • LIFO
  • Average Cost

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 FIFO method. (Round cost per unit to 2 decimal places.)

FIFO

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 2,000 $5.30 $10,600 $5.30 $5.30 $0
Purchases:
August 8 8,000 $5.50 44,000 $5.50 $5.50 0
August 18 6,000 $5.60 33,600 $5.60 $5.60
August 28 4,000 $5.80 23,200 $5.80 $5.80
Total 20,000 $111,400 0 $0 0 $0

LIFO

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 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 2,000 $5.30 $10,600 $5.30 $0 $5.30
Purchases:
August 8 8,000 $5.50 44,000 $5.50 $5.50
August 18 6,000 $5.60 33,600 $5.60 $5.60 0
August 28 4,000 $5.80 23,200 $5.80 $5.80 0
Total 20,000 $111,400 0 $0 0 $0

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 cost per unit to 2 decimal places.)

AVERAGE

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 2,000 $5.30 $10,600
Purchases:
August 8 8,000 $5.50 44,000
August 18 6,000 $5.60 33,600
August 28 4,000 $5.80 23,200
Total 20,000 $111,400 $0 $0

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