Hello,
Can you please help me with this problem and give an explanation for the correct answer? There are three tabs FIFO, LIFO and Average Cost. Thank you
Aug.1 Inventory on hand-3,900 units; cost $7.20 each. 8 Purchased 19,500 units for $7.40 each. 14 Sold 15,600 units for $13.90 each. 18 Purchased 11,700 units for $7.50 each. 25 Sold 14,600 units for $12.90 each. 28 Purchased 5,900 units for $5.80 each. 31 Inventory on hand-10,800 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. Complete this question by entering your answers in the tabs below. 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.) Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO . Ending Inventory - Periodic FIFO FIFO # of units # of units sold Cost per unit $ 7.20 Cost of Goods Available for Sale $ 28,080 Cost per unit $ 7.20 # of units in ending inventory Cost of Goods Sold $ 28,080 Cost per unit $ 7.20 Ending Inventory $ 0 3,900 3,900 5 0 Beginning Inventory Purchases: August 8 August 18 August 28 Total $ 7.40 $ 7.50 $ 5.80 $ 7. 40 $ 7.50 19,500 11,700 5,900 41,000 7,720 58,500 144,300 87,750 34,220 294,350 7,800 7,800 3,900 23,400 $ 7. 40 $ 7.50 $ 5.80 $ 144,300 0 FIFO LIFO 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 LIFO method. (Round "Cost per Unit" to 2 decimal places.) LIFO Cost of Goods Available for Sale Cost te Cost of Goods # of units per Available for Sale unit 3,900 $ 7.20 $ 28,080 Cost of Goods Sold - Periodic LIFO Cost Cost of Goods de # of units sold per unit Sold $ 7.20 $ 0 Ending Inventory - Periodic LIFO # of units in Cost Ending ending per unit Inventory inventory $ 7.20 Beginning Inventory Purchases: August 8 August 18 August 28 Total 19,500 11,700 5,900 41,000 $ 7.40 $ 7.50 $ 5.80 $ 7.40 $ 7.50 144,300 87,750 34,220 294,350 $ 7.40 $ 7.50 $ 5.80 $ 0 $ 0 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 Average cost method. (Round "Average Cost per Unit" to 2 decimal places.) Cost of Goods Sold - Average Cost Average Cost Cost of Goods Available for Sale Unit Cost of Goods # of units Cost Available for Sale 3,900 $ 7.20 $ 28,080 Ending Ending Inventory - Average Cost # of units in Average ending Cost per Inventory inventory unit Average Cost per Unit Cost of Goods Sold # of units sold Beginning Inventory Purchases: August 8 August 18 August 28 Total 19,500 11,700 5,900 41,000 $ 7.40 $ 7.50 $ 5.80 144.300 87,750 34,220 294,350 $
