133 points inventory during the month of August 2016 on hand

133 points inventory during the month of August 2016 on hand 8 Purchased 10,000 units for $5 50 each. 6,000 units for $5 00 each 25 Sold 7,000 units for $11.00 each 31 000 units Determine the inventory balance Altlira would report in its August 31, 2016, balance sheet and the cost of goods sold it would report in its August 2016 income statement using each of the following cost flow methods: (Round \"Average Cost per Unit\" to 2 decimal places.) of Goods Balance Cost of c of units i Cost per tory unit #of cost per cost of |#Of units | Cost per Ending #of Cost per units unit unit Available for units sold unit Goods Sold in ending S 000 S 000 S S 000s August & ugust 18 0.00 0.00 0.00 0.00 0.00 for Sale Cost of Goods Sold August 14 Cost of Goods Sold -August 25 Cost of | #of # of units | Cost per | Cost of |#0f units | Cost per Cost of Cost per Type here to search

Solution

(1) Perpetual FIFO :-

FIFO

Cost of Goods Available for Sale

Cost of Goods Sold-August 14

Cost of Goods Sold-August 25

Inventory Balance

# of units

Cost pu

Cost of Goods Available for Sale

# of units

Cost pu

Cost of Goods Sold

# of units

Cost pu

Cost of Goods Sold

# of units

Cost pu

Ending Inventory

Beginning Inventory

2000

6.1

12200

2000

6.1

12200

-

-

-

-

Purchases:-

August 8

10000

5.5

55000

6000

5.5

33000

4000

5.5

22000

-

-

August 18

6000

5

30000

-

-

3000

5

15000

3000

5

15000

Total

18000

97200

8000

45200

7000

37000

3000

15000

(2) Perpetual LIFO :-

LIFO

Cost of Goods Available for Sale

Cost of Goods Sold-August 14

Cost of Goods Sold-August 25

Inventory Balance

# of units

Cost pu

Cost of Goods Available for Sale

# of units

Cost pu

Cost of Goods Sold

# of units

Cost pu

Cost of Goods Sold

# of units

Cost pu

Ending Inventory

Beginning Inventory

2000

6.1

12200

-

-

-

-

2000

6.1

12200

Purchases:-

August 8

10000

5.5

55000

8000

5.5

44000

1000

5.5

5500

1000

5.5

5500

August 18

6000

5

30000

-

-

6000

5

30000

-

-

Total

18000

97200

8000

44000

7000

35500

3000

17700

(2) Perpetual Average:-

LIFO

Inventory on Hand

Cost of Goods Sold-August 14

Inventory Balance

# of units

Cost pu

Inventory Value

# of units

Avg cost pu

Cost of Goods Sold

# of units

Cost pu

Ending Inventory

Beginning Inventory

2000

6.1

12200

2000

6.1

12200

Purchase-Aug 8

10000

5.5

55000

10000

5.5

55000

Subtotal Average cost

12000

5.6

67200

Sale-Aug 14

8000

5.6

44800

Subtotal Average cost

4000

5.6

22400

Purchase-Aug 18

6000

5

30000

6000

5

30000

Subtotal Average cost

10000

5.24

52400

Sale-Aug 25

7000

5.24

36680

Total

18000

97200

15000

81480

3000

15720

(3) Average cost :-

FIFO

Cost of Goods Available for Sale

Cost of Goods Sold-Periodic FIFO

Ending Inventory-Periodic FIFO

# of units

Cost pu

Cost of Goods Available for Sale

# of units

Cost pu

Cost of Goods Sold-Periodic FIFO

# of units

Cost pu

Ending Inventory-Periodic FIFO

Beginning Inventory

10500

8.80

92400

41000         7.6            311600

15500            7.6                 117800

Purchases:-

August 8

30000

7.50

225000

August 18

16000

7.00

112000

Total

56500

429400

41000

311600

15500

129900

Avg cost per unit = Total cost available for sale/N of units available for sale

     = 429400/56500 = 7.6

FIFO	Cost of Goods Available for Sale	Cost of Goods Sold-August 14	Cost of Goods Sold-August 25	Inventory Balance
	# of units	Cost pu	Cost of Goods Available for Sale	# of units	Cost pu	Cost of Goods Sold	# of units	Cost pu	Cost of Goods Sold	# of units	Cost pu	Ending Inventory
Beginning Inventory	2000	6.1	12200	2000	6.1	12200	-		-	-		-
Purchases:-
August 8	10000	5.5	55000	6000	5.5	33000	4000	5.5	22000	-		-
August 18	6000	5	30000	-		-	3000	5	15000	3000	5	15000
Total	18000		97200	8000		45200	7000		37000	3000		15000