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.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 8P: Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning...

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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.

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