E 8-14 Inventory cost flow methods; perpetual system LO8-1, LO8-4 [This is a variation of E...

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E 8-14 Inventory cost flow methods; perpetual system LO8-1, LO8-4 [This is a variation of E 8-13 modified to focus on the perpetual inventory system and alternative cost flow methods.] Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory during the month of August 2018: 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 Exercise 8-14 First-in, first-out (FIFO) Cost of goods sold: Date of sale Units sold Cost of units sold Total cost Ending inventory: Last-in, first-out (LIFO) Date Purchased Sold Balance Beginning inv. 2,000 @ $6.10 = $12,200 2,000 @ $6.10 = $12,200 Total cost of goods sold E 8-14 Inventory cost flow methods; perpetual system LO8-1, LO8-4 [This is a variation of E 8-13 modified to focus on the perpetual inventory system and alternative cost flow methods.] Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory during the month of August 2018: 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 Exercise 8-14 First-in, first-out (FIFO) Cost of goods sold: Date of sale Units sold Cost of units sold Total cost Ending inventory: Last-in, first-out (LIFO) Date Purchased Sold Balance Beginning inv. 2,000 @ $6.10 = $12,200 2,000 @ $6.10 = $12,200 Total cost of goods sold