Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand—5,000 units; cost $6.80 each. August 8 Purchased 20,000 units for $7.00 each. August 14 Sold 15,000 units for $13.50 each. August 18 Purchased 15,000 units for $7.10 each. August 25 Sold 17,500 units for $12.50 each. August 28 Purchased 10,000 units for $7.30 each. August 31 Inventory on hand—17,500 units. Required: Using calculations based on a periodic inventory system, determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using each of the following cost flow methods. Determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using the FIFO method. Determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using the LIFO method. Determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using the Average cost method. Note: Round "Average Cost per Unit" to 2 decimal places.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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August 1	Inventory on hand—5,000 units; cost $6.80 each.
August 8	Purchased 20,000 units for $7.00 each.
August 14	Sold 15,000 units for $13.50 each.
August 18	Purchased 15,000 units for $7.10 each.
August 25	Sold 17,500 units for $12.50 each.
August 28	Purchased 10,000 units for $7.30 each.
August 31	Inventory on hand—17,500 units.

Required:

Using calculations based on a periodic inventory system, determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using each of the following cost flow methods.

Determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using the FIFO method.

Determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using the LIFO method.

Determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using the Average cost method.

Note: Round "Average Cost per Unit" to 2 decimal places.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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