Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the

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Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the month of August 2018 is available:
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
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Intermediate Accounting

ISBN: 9781259722660

9th Edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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