# INT ACCT HW 8

## INT ACCT HW 8

12/11/12

Assignment Print View

Score: 4

1.

out of 4 points (100%)

aw ard:

1 out of
1.00 point
Altira Corporation uses a periodic inventory system. The following information related to its merchandise
inventory during the month of August 2011 is available:
Aug.1
8
14
18
25
31

Inventory on hand—2,800 units; cost \$6.27 each.
Purchased 10,000 units for \$6.55 each.
Sold 7,900 units for \$13.10 each.
Purchased 7,500 units for \$5.10 each.
Sold 8,800 units for \$12.05 each.
Inventory on hand—3,600 units.

Required:
Determine the inventory balance Altira would report in its August 31, 2011, balance sheet and the cost of
goods sold it would report in its August 2011 income statement using each of the following cost flow
methods: (Do not round intermediate calculations and round final answers to the nearest dollar
Cost Flow Method
1. First-in, first-out (FIFO)
2. Last-in, first-out (LIFO)
3. Average cost

Inventory Balance
\$ 18,360
\$ 22,796
\$ 21,504

Cost of Goods Sold
\$ 102,946
\$ 98,510
\$ 99,755

Learning Objective: 08-01 Explain the difference
between a perpetual inventory system and a periodic
inventory system.

Worksheet

Learning Objective: 08-04 Differentiate between the
specific identification, FIFO, LIFO, and average cost
methods used to determine the cost of ending
inventory and cost of goods sold.

Altira Corporation uses a periodic inventory system. The following information related to its merchandise
inventory during the month of August 2011 is available:
Aug.1
8
14
18
25
31

Inventory on hand—2,800 units; cost \$6.27 each.
Purchased 10,000 units for \$6.55 each.
Sold 7,900 units for \$13.10 each.
Purchased 7,500 units for \$5.10 each.
Sold 8,800 units for \$12.05 each.
Inventory on hand—3,600 units.

Required:
Determine the inventory balance Altira would report in its August 31, 2011, balance sheet and the cost of
goods sold it would...