ltira Corporation uses a periodic inventory system. The following information related to merchandise inventory during the month of August 2013 is available: Aug. 1 inventory on hand 2,000 units, cost $6.10 each purchased 10,000 units for $5.50 each. 14 sold 8,000 units for $12.00 each. 18 purchased 6,00 units for $5.00 each. 25 sold 7,000 units for $11.00 31 inventory on hand 3,000 units. Required: Determine the inventory balance Altira would report in its August 31, 2013, statement of financial position and cost of goods sold it would report in its August 2013 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.
Altira Corporation uses a periodic inventory system. The following information related to
merchandise inventory during the month of August 2013 is available:
Aug. 1
inventory on hand 2,000 units, cost $6.10 each
purchased 10,000 units for $5.50 each.
14 sold 8,000 units for $12.00 each.
18 purchased 6,00 units for $5.00 each.
25 sold 7,000 units for $11.00
31
inventory on hand 3,000 units.
Required:
Determine the inventory balance Altira would report in its August 31, 2013,
financial position
statement using each of the following cost flow methods:
1. First-in, first-out (FIFO)
2. Last-in, first-out (LIFO)
3. Average cost.
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