E 8-14 Inventory cost flow methods; perpetual system

Altira Corporation uses a perpetual 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 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

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:

1. First-in, first out (FIFO) 2. Last-in, first-out (LIFO) 3. Average Cost