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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
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 - 10,500 units; cost $8.80 each |
8 Purchased 30,000 units for $7.50 each |
14 Sold 21,000 units for $14.00 each |
18 Purchased 16,000 units for $7.00 each |
25 Sold 20,000 units for $13.00 each |
31 Inventory on hand - 15,500 units |
Required: Determine the inventory balance Altira would report in it's August 31, 2018, balance sheet and the cost of goods sold it would report in its August 2018 income statement using FIFO, LIFO, and the Average Cost method:
FIFO | COG Available for Sale | COG Sold - Periodic FIFO | Ending Inventory - Periodic FIFO | ||||||
# of units | Cost per unit | COG Available for Sale | # of units sold | Cost per unit | COG Sold | # of units in ending inventory | Cost per unit | Ending inventory | |
Beginning Inventory | 10,500 | $8.80 | $92,400 | 10,500 | $8.80 | $92,400 | 0 | $8.80 | 0 |
Purchases: | |||||||||
Aug 8 | 30,000 | $7.50 | $225,000 | 30,000 | $7.50 | $225,000 | 0 | $7.50 | 0 |
Aug 18 | 16,000 | $7.00 | $112,000 | ? | $7.00 | ? | ? | $7.00 | ? |
Total | 56,500 | $429,400 | ? | ? | ? |
LIFO | COG Available for Sale | COG Sold - Periodic LIFO | Ending Inventory - Periodic LIFO | ||||||
# of units | Cost per unit | COG Available for Sale | # of units sold | Cost per unit | COG Sold | # of units in ending inventory | Cost per unit | Ending inventory | |
Beginning Inventory | 10,500 | $8.80 | $92,400 | 0 | $8.80 | $0 | 10,500 | $8.80 | $92,400 |
Purchases: | |||||||||
Aug 8 | 30,000 | $7.50 | $225,000 | ? | $7.50 | ? | ? | $7.50 | ? |
Aug 18 | 16,000 | $7.00 | $112,000 | 16,000 | $7.00 | $112,000 | 0 | $7.00 | 0 |
Total | 56,500 | $429,400 | ? | ? | ? | ? |
Average Cost | COG Available for Sale | COG Sold - Average Cost | Ending Inventory - Average Cost | ||||||
# of units | Cost per unit | COG Available for Sale | # of units sold | Cost per unit | COG Sold | # of units in ending inventory | Cost per unit | Ending inventory | |
Beginning Inventory | 10,500 | $8.80 | $92,400 | ||||||
Purchases: | |||||||||
Aug 8 | 30,000 | $7.50 | $225,000 | ||||||
Aug 18 | 16,000 | $7.00 | $112,000 | ||||||
Total | 56,500 | $429,400 | 41,000 | ? | ? | 15,500 | ? | ? |
NOTE: I have filled in what I know, I just need help with where the question marks are.
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